Tom Dyson reports that Natural Gas is now below its cost of production – after having fallen all the way down to $3.50 at a recent low point (sitting currently at $4.31).
Dyson urges readers to “get long” now:
I expect the rise in gas prices is imminent. Gas prices track oil prices. Oil has risen 43% since Christmas. Gas has to catch up. Also, speculators have bet so heavily against natural gas prices, they’re breaking historic records. Right now, speculators have huge positions against the commercials (or the actual fuel users). When speculators are all on the same side of the trade, a violent reversal is near.