Why all this interest in the long side of natural gas? Because the hedge funds realize that we are crossing that historic turning point in this market where demand growth expectations will start to outstrip production increases.
A surge on talk of refining issues and tight gasoline blending components sent prices flying. Yet the lack of follow-through with crude oil and heating oil may mean that this run on gas may soon be coming to an end.
Is it any wonder that even the IEA lowed its global oil demand forecast for 2012 and 2013 by 300,000 to 400,000 barrels a day? The IEA says 2013 oil demand growth at 0.8 million barrels a day down from 1 million barrels a day.
Chad Porter wants to run his 18- wheeler trucks on frozen natural gas along a highway that crosses Canada’s Rocky mountains even before the world’s longest chain of refueling stations gets built to keep them fueled.