Guinness predicts rebound in gas prices after 50% drop

clock • 2 min read

Tim Guinness, chairman and CIO of Guinness Asset Management, said natural gas is an excellent buying opportunity after a dramatic fall in value caused by the US' recent move into shale gas.

The shale gas revolution has seen the average price drop over 50% from around $8 per mcf (thousand cubic feet) during the middle of the noughties, to just $3.50. But Guinness (pictured) said the price has fallen too far and, although it is unlikely to revert back to its former level, he still sees a great deal of upside. "The biggest opportunity which is staring us in the face is the languishing US natural gas price," Guinness said. "Our view is that it is bound to recover to $6. The US gas market is very competitive as there are lots of players, but it also tends to exhibit boom a...

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