Demand in the Electric Sector May Raise Natural Gas Prices

Long-term shifts in electric sector demand from coal to natural gas are under way and will drive gas prices higher than expected this year and to $4 per million Btu in 2013, says a veteran analyst.

Record gas use by electric utilities, combined with production cuts from drillers stung by recent low prices, have combined to start an upward pricing trend, said Teri Viswanath of BNP Paribas Commodity Markets Strategy Group, in a May 11 market commentary.

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Filed Under: Generation
Top image credit: Tony Walker