July 1 (Bloomberg) -- U.S. natural-gas prices will increase from “late 2012” as rigs drilling for the fuel in North America are diverted to search for oil, Barclays Plc said.
“We expect that when the gas market realizes supply is no longer growing, it will mark a watershed event, causing gas prices to move higher, most likely for 2013 and beyond,” Barclays analysts including Michael Zenker in San Francisco said today in a research note. “We forecast this to occur at the very end of 2012.”
Barclays said the U.S. gas market will remain bearish this year. In 2012 lower Canadian production, reduced imports of liquefied natural gas and a slower pace of U.S. supply growth will allow demand expansion to outpace supply, the report said.
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