Insider Secrets

Insider Secrets

Learn how the PROs are making money from the oil and energy market.

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Energy / Gas Prices

  • Gazprom Braces For Gas Price War With U.S. LNG

    U.S. oil drillers have been hollowed out from what has been described as a price war waged by OPEC. But a separate price war might soon descend upon the U.S. natural gas industry, which is already reeling from a downturn in prices. The market for natural gas is not a global one in the same way that it is for crude oil. So while supply and demand fluctuations will reverberate around the world, the full effects of sudden shifts in fundamentals are usually confined to regional markets. A global surge in natural gas export capacity is making the gas trade…

  • Silver Lining For Natural Gas As EIA Forecasts Price Hike

    While natural gas producers in the U.S. have been suffering a price slump no less considerable than the oil price decline over the last couple years, they may now have cause for celebration as investors will be eyeing the Energy Information Administration’s (EIA) latest Short-Term Energy Outlook, which forecasts a rise in gas prices alongside consumption over this year and next. Prices fell from around $4.70 per million British thermal units (MMBtu) in June 2014 to $1.93 in December 2015, the lowest since March 1999, the Agency said. Yet this seems to be about to change with the industrial use…

  • Anxious Natural Gas Traders Forget Fundamentals

    February Natural Gas The big story the past week was the nearly 25 percent surge in February Natural Gas futures prices. The move was driven by the change from extremely warm temperatures in key demand areas in December to forecasts of below normal temperatures for early January. After settling at its lowest level in 16-years on December 17, natural gas went on a tremendous run which took prices to their highest level since November 19. The move took many traders by surprise, causing a short-squeeze in the January futures contract, which expired on December 29. The price action on December…

  • Gazprom Rapidly Losing Grip On European Markets

    When talking about energy security in Central and Eastern Europe (CEE), most governments think of gas pipelines. The bigger they are, the more secure they feel. In the past decade, at least 10 large-scale pipeline projects have been initiated and proclaimed as the ultimate source of gas diversification and energy security. However, just one has been actually realized – Nord Stream – and still Gazprom can fill its capacity only half-way making the project largely uneconomical. The reason is that large cross-continental pipelines are risky business endeavors in a very volatile market. They require enormous fixed investment, long-term predictable demand…

  • Shale Gas Revolution Is Not Done Yet

    Most of the time companies see greater productivity as a good thing. Improved asset productivity helps companies produce more output for every dollar of input which usually increases profits. But what if every company across an industry produced more output? That is exactly what is happening in the natural gas market right now, and the results are looking increasingly dire for natural gas companies. This summer, EQT Corp drilled what might be the largest natural gas well ever in the U.S. The summertime gusher in Pennsylvania’s Green County put out enough gas in the first 24 hour to power every…

  • Natural Gas Companies Slammed By Low Prices

    Natural gas spot prices continue to hover near multiyear lows, putting increased pressure on natural gas producers as revenues sink. Although rig counts have been falling for years, a handful of rigs continue to disappear each week. The natural gas rig count is down to just 193 as of mid-November, down by nearly half from this point a year ago. To make matters worse, oil rigs are also vanishing, so the associated natural gas that is produced in conjunction with oil is also starting to tip. Natural gas production nationwide was down 0.2 percent for the week ending on November…

  • Short Sellers Not Budging In NatGas Market

    Unleaded Gasoline   (Click to enlarge) Despite another increase in crude oil and gasoline supplies, it looks like value-seeking buying was strong enough to turn gasoline prices higher for the week while limiting the downside price action in crude oil. The relatively powerful rebound rally in unleaded gasoline as it neared the contract low should be noted because it serves as further proof that we are in a trading range and are likely to stay there until OPEC makes its decision on production on December 4. Profit-taking and short-covering were likely the major drivers of the price action, but there…

  • LNG Glut Set To Worsen Considerably Over Next 3 Years

    LNG supplies are set to boom over the next 3 years. The IEA’s 2015 World Energy Outlook expects LNG export capacity to grow rapidly in the short-term, with major new sources of supply coming mostly from Australia and the United States. Indeed, this first wave of new LNG capacity is already under construction and many projects are nearing completion. Australia is expected to nearly quadruple its LNG export capacity between 2014 and 2018, as it adds 58 million tonnes per annum (mtpa) of LNG export capacity. The U.S. is expected to see its first shipment leave its shores in the…

  • Bottom Fishing In Natural Gas

    For most people, the fall of crude oil since the middle of last year has been the dominant story in commodities recently. You still hear much talk of a “freefall” and the like, even though the low for WTI was reached more than two months ago and oil is now trading at levels over 20 percent higher than it was then. For industry insiders and those of us who follow these things, however, the more scary collapse has been in natural gas. That drop started while oil was still pretty buoyant back at the beginning of 2014 and has continued…

  • The Stock That Keeps Going Up As Gas Prices Fall

    Most companies in the energy industry are hurting as oil prices fall. There are exceptions of course, like refiners and tankers that can be good investments in some special circumstances when energy markets are challenging. Yet most companies in the space need rising or at least reasonably high oil prices to be considered really strong investments. There is one exception to this rule – a stock which directly benefits from lower gasoline prices – and that company has seen monster gains over the last year as oil prices have tanked; Casey’s General Stores; Inc.Casey’s General Stores trades under the ticker…

Martin tiller