Analyst calls U.S. natural gas "complete disaster"

The U.S. natural gas market is clogged with a glut of supply that's making it difficult for energy firms to grow in the sector. The U.S. natural gas market is clogged with a glut of supply that's making it difficult for energy firms to grow in the sector. 

Pavel Molchanov, an analyst with Raymond James & Associates who's been named the in the Wall Street Journal "Best on the Street" survey and the Forbes "Blue-Chip Analyst" survey, went so far as to tell The Wall Street Transcript that, "natural gas - and for these purposes we're really talking about North American natural gas - on the other hand is a complete disaster and has been, as I said, for the past several years. We see no hope for North American natural gas to meaningfully recover anytime soon."Pavel Molchanov, an analyst with Raymond James & Associates who's been named the in the Wall Street Journal "Best on the Street" survey and the Forbes "Blue-Chip Analyst" survey, went so far as to tell The Wall Street Transcript that, "natural gas - and for these purposes we're really talking about North American natural gas - on the other hand is a complete disaster and has been, as I said, for the past several years. We see no hope for North American natural gas to meaningfully recover anytime soon."

Molchanov cites overproduction and an excess supply of gas, which has kept prices low even as the winter heating season starts. While oil appears to be benefiting from global growth and declining currencies, natural gas futures have been stagnant. Molchanov cites overproduction and an excess supply of gas, which has kept prices low even as the winter heating season starts. While oil appears to be benefiting from global growth and declining currencies, natural gas futures have been stagnant. 

On the New York Mercantile Exchange, December natural gas futures sank 1.4 percent to $3.781 per million British thermal units, after the Energy Department said that stockpiles rose 67 billion cubic feet to 3.821 trillion cubic feet.On the New York Mercantile Exchange, December natural gas futures sank 1.4 percent to $3.781 per million British thermal units, after the Energy Department said that stockpiles rose 67 billion cubic feet to 3.821 trillion cubic feet.

The all-time high was set last November at 3.837 trillion cubic feet.The all-time high was set last November at 3.837 trillion cubic feet.