“Nothing lasts forever. By curbing output and tempting users, cheap gas will one day be its own undoing, especially if next winter is cold. Meanwhile, natural-gas markets may have to sit through a summer showing of ‘Less Than Zero.’”
The Wall Street Journal reports:
Traders like to exude an “I’ve-seen-this-movie-before” air of nonchalance. But the thriller unfolding in natural-gas markets—call it “Frackopalypse Now”—has even the most jaded of them on the edge of their seats.
U.S. natural-gas prices are at a decade low, at about $2.20 a million British thermal units. That marks an unprecedented discount to crude oil. And next week heralds the start of “injection season,” the time from April through October when warmer weather allows for rebuilding gas inventories.
This could make an already bad glut of gas far worse. The fear is that producers could be forced to actually give gas away…