Bernstein Cuts 2010 U.S. Natural Gas Price Forecast
Sanford C. Bernstein & Co. cut its U.S. natural-gas price forecasts for 2010 and the next two years because of increased drilling to extract the commodity.
“The bearish sentiment toward gas prices has intensified recently with the U.S. gas rig count rising, no hurricane disruptions in sight and the summer heat wave on the verge of ending,” analysts Scott Gruber and Brian Downey said today in an e-mailed report.
Gas will average $4.75 per thousand cubic feet this year, $6.50 next year and $8 in 2012, the analysts said. The previous forecasts were for $7, $8.50 and $9.18, respectively, they said. A thousand cubic feet is 1.01 million British thermal units, according to BP Plc’s Statistical Review.
Natural gas rig count has increased 39 percent this year, according to data published by Baker Hughes Inc. on Sept. 3. The market will be “slightly” undersupplied this year, while inventories may remain above average after the oversupply in 2009, the Sanford Bernstein analysts said.
To contact the reporter on this story: Lars Paulsson in London at lpaulsson@bloomberg.net
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