Back in early June, I discussed my belief that natural gas was undervalued in Natural Gas Is A Buy. I highlighted that over the past 20 years, when natural gas prices have dropped below $2.50 per million British thermal units (MMBtu), the price proceeded to more than double within two years. I pointed out that we were experiencing only the 4th drop below $2.50 in the past 20 years:
Natural gas consumption in the US is highly cyclical. Between April and November of each year, more natural gas is produced than consumed.
