It’s one thing when Jeff Gundlach, a bond manager, calls a bottom in natural gas as he did last month. It’s a whole other story when an energy billionaire calls the bottom. Boone Pickens was on CNBC today saying natural gas prices have likely seen their lows. He says:
“You’re gonna tighten this thing up. Looking out at summer next year at 3-plus (dollars), I think that’s where you’re gonna be. Yeah, I think you’ve bottomed out on natural gas prices.”
The primary drivers here? Shutting down oil rigs and the decline in coal production should benefit natural gas demand. Additionally, Pickens says the USA has to stop exporting wealth to OPEC and start tapping the resources the USA has here. And nat gas is his primary focus regarding these comments.