Natural Gas Prices To Remain Bearish in 2010

According to a recent Research Report from Barclays Capital, 2010 is shaping up to be a bearish year for natural gas prices given the large overhang, recent pickup in rig count, continued strong volume momentum and expected restoration of currently curtailed production. There is a high risk that Europe will not be able to absorb the increased supply expected in the Atlantic Basin in 2010.

According to the report the total natural gas rig count (as of 11/20) fell 2 rigs from the previous week to 726 and is up 61 rigs (9%) from the mid-July low. Horizontal drilling activity has risen by 159 rigs (~43%) from the early June low.