Gas prices slumped to a near five-year low of $1.91/MMBtu on January 20th, with milder-than-normal weather over much of the US since the start of the year limited the need for extra gas. The liquified natural gas market has been under pressure last year as record levels of production in the US, mainly from Appalachian and Permian Basin, and slower demand growth in Asia led to a surplus environment. Historically, Natural gas reached an all time high of 15.78 in December of 2005.
Natural gas is expected to trade at 2.16 USD/MMBtu by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 2.38 in 12 months time.