By Goehring & Rozencwajg
In our view, natural gas prices are reaching a turning point. Gas spiked to decade highs last spring following Russia’s invasion of Ukraine, only to fall back on milder-than-normal winter weather. Instead of running out of gas, traders worried about running out of storage as prices collapsed to near-all-time lows.
During market panic or euphoria, investors make the mistake of linearly extrapolating current trends. As a result, they fail to see the ground shifting underneath them and miss out on excellent opportunities. Natural gas represents a classic buying opportunity, and we believe investors are again focused on all the wrong issues.