World Perspectives

Natural Gas Low and Slow Going into Fall

We are going into the fall this year with historically low natural gas prices, and the current bear market situation is being driven by one large factor.The U.S. Energy Information Administration (EIA) announced last week that U.S. natural gas inventories rose by 94 billion cubic feet to a total of 3.193 trillion cubic feet as of 28 August. That is 18.3 percent higher than last year at this time. It is also 4 percent above the five-year average, which is also higher than it was prior to 2010 because of the shale gas boom. The EIA numbers came in higher than most analysts expected. In fact, the range for the nearby contract between Memorial Day and Labor Day held steady at $2.60-2.95 per million Btu (mmbtu).Moreover, open interest on the NYM...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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