• 4 minutes "Saudi Armada heading to U.S.", "Dumping" is a WTO VIOLATION.
  • 7 minutes Trump will be holding back funds that were going to W.H.O. Good move
  • 11 minutes Washington doctor removed from his post, over covid
  • 15 minutes Which producers will shut in first?
  • 7 hours Why Trump Is Right to Re-Open the Economy
  • 13 mins A small trial finds that hydroxychloroquine is not effective for treating coronavirus
  • 2 hours Sharp real pure true hard working roughneck needing work..
  • 13 mins Charts of COVID-19 Fatality Rate by Age and Sex
  • 22 mins Russia's Rosneft Oil is screwed if they have to shut down production as a result of glut.
  • 15 mins Corona Price Tag
  • 18 hours Wouldn't fall in demand balance it out?
  • 14 hours US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 1 hour Bernie Sanders introduces bill to ban fracking
  • 4 hours 80's GOM Oil Fam: Mid-80's Oil Glut Part Deux?
  • 7 hours CCP holding back virus data . . . . . . Spanish Flu 1918 MUTATED, Came in 3 waves, Lasted 14 months and killed upward 5% World population
  • 13 hours Its going to be an oil bloodbath
Alt Text

Big Oil Raises Debt To Ride Out Price Crash

As prices crashed, the supermajors…

Alt Text

Saudi Arabia Could Cut Up To 4 Million Bpd

Saudi Arabia could be prepared…

Martin Tillier

Martin Tillier

More Info

Premium Content

Don’t Trust The Bounce In Natural Gas

As I write on Friday, natural gas is having one of its best days for months and is trading well over six percent above yesterday’s close. That and the fact that yesterday also was a day of gains in gas futures makes it tempting to view this as the start of a long-awaited recovery in a commodity that has lost over half its value since the end of last year. That, however, would be a mistake.

The bounce that we have seen over the last few days also looks sustainable based on the chart. After hitting a low of 2.1590 a couple of weeks ago, nat gas looked like testing that level again before the last two days of gains, and the “higher low” pattern that has come from that is usually seen as a bullish sign. The problem is that technical analysis can only take you so far, and the fundamental conditions that have dragged natural gas down all this year are still there.

That is a systemic, chronic supply problem, while the cause of this jump is a temporary, supply related issue.

To really appreciate the nature of the problem, it is best to take a step back and look at the historical context. As you can see from the EIA chart below, U.S. natural gas marketed production has been increasing sharply since the middle of 2005.

There are two main reasons for that. Fracking has increased the accessibility of natural gas, and infrastructure improvements mean that more of it actually gets to market than was the case in the recent past. Yes,…






Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News