Barclays Sees Gas Prices Remaining Around $4 This Year

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U.S. natural gas prices may remain at about $4 per million British thermal units in 2011, according to Barclays Capital.

While gas may slide to as low as $2 per million Btu in the short term, “concerted demand and supply reactions would restore prices” to near $4, Barclays said in a research note dated yesterday. Power plants may substitute coal with gas as the fuel turns cheaper, arresting the slide.