Frac Spread: If Winter Gas Price Goes Up, It Won’t Last Long

High inventory will keep prices stable, says Greg Haas of Stratas Advisors; NGL prices struggle in the past week.

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Greg Haas of Stratas Advisors speaks at the Marcellus-Utica Midstream Conference in early December in Pittsburgh. (Source: Joseph Markman/HartEnergy.com)

Natural gas prices could spike into the $3 per million British thermal units range if temperatures plunge this winter, but strong inventory will ensure they won’t stay there long, an analyst said at Hart Energy’s recent Marcellus-Utica Midstream Conference.

“We’re sitting very well within the normal range for natural gas storage, which portends normal pricing for natural gas this winter,” said Greg Haas, director of integrated energy research for Stratas Advisors.

While average annual natural gas storage levels were low earlier in the year, “look at how fast we’ve climbed,” Haas said. “We’ve really come back and now we’re basically well above average.”

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Joseph Markman

Joseph Markman, senior editor for Hart Energy, covers markets and provides data analysis for all Hart Energy editorial products.