Natural gas equities to soar 70% as demand surges

Natural gas equities are offering 70% upside from current lows as the soaring price of crude oil boosts demand for gas, according to Investec's Jonathan Waghorn.

Tim Guinness is also expecting a 50% rise in the underlying commodity as Brent crude hits new highs, and halting nuclear production prompts a surge in gas usage. Germany said last week it will not build any more nuclear plants and intends to close all its existing nuclear stations by 2022, while the Japanese earthquake and nuclear disaster earlier this year also threaten the future of nuclear power. Waghorn, manager of the £345m Investec Global Energy fund, said US Henry Hub, a pricing point for gas futures, is at one of its lowest historical levels relative to Brent crude. “The US ...