SOURCE: Energy Solutions, Inc.

Energy Solutions, Inc.

June 27, 2011 09:11 ET

Natural Gas Prices Fall as Holiday Approaches

The 4th of July Holiday Is Historically the Lowest Demand Day of the Year for Natural Gas, Creating a Window of Opportunity for Natural Gas Buyers

VERONA, WI--(Marketwire - Jun 27, 2011) - The 4th of July holiday is historically the lowest demand day of the year for natural gas. "Natural gas buyers should be prepared for potential natural gas price weakness between July 27 and July 8," says Valerie Wood, President and Owner of Energy Solutions, Inc.

The tropics are quiet. Baker Hughes reported that the natural gas drilling rig count rose by 3 rigs last week. Storage injections are expected to pick up dramatically over the next two months, reducing the year-on-year storage deficit. Crude oil prices are very close to falling below $90 per barrel. Economic news continues to be considered neutral at best.

"One could easily look at these fundamentals as indicators of a natural gas market that is going to continue to decline. However, that could quickly change when one of the above fundamentals change," says Wood. The most likely change will be a tropical storm development. While tropical storms are expected to have a reduced impact on natural gas production shut-ins because of an increase in onshore production, a developing storm may still have a psychological impact on prices, particularly if speculators view such a development as a profit-making opportunity.

Energy Solutions, Inc. alerts natural gas buyers of buying opportunities through the issuance of Pricing Alerts.

View the most recent Pricing Alert at

Following this period of price weakness associated with the 4th of July holiday, Energy Solutions, Inc. expects natural gas price to stage a sizeable rally before working lower again in the third quarter. However, Wood warns that those buyers who are waiting solely for this late-fall price dip also need to be confident that they won't be forced into panic-buying if natural gas prices temporarily surge on a hurricane threat.

About Energy Solutions, Inc.

Formed in 1996, Energy Solutions, Inc. is independently owned. With more than 50 years of experience in the natural gas industry, our team focuses on natural gas prices and in helping businesses improve their internal processes for the purchase of natural gas.

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