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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

AJ Bell posts record rise in platform flows as AUA hits £108.7bn

AJ Bell posts record rise in platform flows as AUA hits £108.7bn

Net flows up 42%

Cristian Angeloni
clock 23 April 2026 • 2 min read
Why advisers should adopt Gaudi's 'my client is not in a hurry' approach

Why advisers should adopt Gaudi's 'my client is not in a hurry' approach

Dan Brocklebank makes keynote speech at PA360

Isabel Baxter
clock 23 April 2026 • 2 min read
Four Asian investment lessons in the face of turmoil

Four Asian investment lessons in the face of turmoil

South Korea, Vietnam and Indonesia have suffered some of the biggest falls since the start of the war

Gabriel Sacks
clock 23 April 2026 • 4 min read