Four Reasons Why Natural Gas Could Sell Off

on March 28, 2013 at 11:30 AM


Natural gas has been on fire lately. On Wednesday, it hit the highest level since September 2011, and it’s risen an incredible 113 percent since April.

So can nat gas keep running higher?

Addison Armstrong wouldn’t bet on it. The senior director of market research at Tradition Energy told CNBC.com a sell-off is a short way off. Here are the four reasons why he’s bearish.

1. Demand Tends to Be Lower in the Spring

Armstrong said natural gas prices tend to drop in the second quarter. To understand why that is, just go outside.

“Air conditioning demand hasn’t kicked in yet, and we’re not using natural gas to heat our homes and offices,” Armstrong said. “So that’s a normal seasonal pattern that we think is going to weigh on the markets going forward.”

For the rest of this article, view the full post on CNBC here.

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