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Are We in for a Summer of High Natural Gas Prices?

By Joel South and Taylor Muckerman - Mar 26, 2014 at 12:43PM

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With decade low natural gas storage levels, we could see higher prices this summer.

Source: flickr/Derrick Coetzee

This week usually ends the natural gas withdrawal season, as spring weather typically reduces the amount of natural gas needed to power the United States. However, with cold weather still affecting large metropolitan areas throughout the U.S., in addition to an atypically cold winter season, natural gas storage is on pace to reach its lowest level in a decade. With an estimated 2.8 trillion cubic feet needed to replenish natural gas storage to its five-year average, prices could remain at elevated levels this summer. This could be the break natural gas producers have needed. 

This segment is from Tuesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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