Topic: | Re:Re:Re:Re:Re:Re:Re:Re:Reasons why Gordon Brown must go | |
Posted by: | Matthew Varey | |
Date/Time: | 04/12/09 13:14:00 |
I think Natgas is highly vulnerable still here. You're talking North American I assume? There is a ton of LNG capacity still to start up and most of it will end up in the US market, as that's the only market which has the ability to take additional supply. Marginal cost of LNG production once the train is complete is minimal, so it could end up displacing US production. It's possible that US gas will trade at marginal cost of production for a while. Saying all that, gas is, as always, basically a play on the weather. If the US has a cold winter then gas will get a spike. So on the whole I am pretty cautious, but there is probably more upside than down on offer at this price. |