Light at the end of the US gas market tunnel

Production keeps lid on prices

Production keeps a lid on gas prices

Relatively weak natural gas prices over the past two years have failed to make a dent in US production levels and, as a result, the balance of the market remains skewed as demand struggles to soak up the supply overhang.

The near-term forecast does not seem to show much disruption to this picture, with analysts predicting an average price of $4.98 per million British Thermal Units (MMBtu) in 2011, up from the year-end average forecast for 2010 of $4.68/MMBtu (see table 1). The clock is now ticki

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