Update 2/25/11 T.Boone Pickens Cares
With oil in the $100 range Nat Gas is getting more attention. That goes along with the usual talk about our lack of energy policy and the U.S. addiction to oil.T.Boone Pickens was on CNBC today and when asked what to do about “ol” said two things: open up the Gulf to drilling and somehow push use of nat gas in heavy equipment.Mr. Pickens says oil could easily go to $120 and higher and he favors an energy policy that focuses more on nat gas.
With $100 oil we also hear a lot about the need for energy policy and what to do: stop growing corn for ethanol(burning food), cut out oil Co. subsidies, higher taxes on energy, taxes on oil imports, co-ordination of FED and State policies etc
Support at 3.83 level being tested-Now at 3.918
Nat Gas inventory was down 81 BCF and the March contract hit a new low near 3.828 BTU so that could be the bottom. Technicians are looking for a rally to the 3.992 area with downside support at 3.776. There is not enough industrial demand and one of the coldest winters had no impact. Supply is easing but we have a long way to go. The Chesapeake (CHK) CEO was on CNBC yesterday talking up the long term potential but apparently the hedges by the producers are still on. And coal fired power plants still rule. The oil crisis has no impact on nat gas pricing.
But Trading Volume is Up and Traders Like it?
Buy below 4 sell above 5.Is it that easy?
And GAS stocks are doing well: