GAZB - Natural Gas Continues To Melt - Bad News For Debt-Laden Companies Like Chesapeake
When a commodity's price falls to a level where the cost of production falls below the market price, it enters the bottom end of its pricing cycle. Raw materials can be highly volatile asset markets. Prices tend to rise to levels where production increases, inventories rise, and the elasticity of demand often makes market participants turn to substitutes. At the top end of a pricing cycle, the market usually runs out of buying, and the price declines. In the world of commodities, that decline can turn into a falling knife.
When a commodity falls below