• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 21 mins Dutch Populists Shock the EU with Election Victory
  • 4 hours One Last Warning For The U.S. Shale Patch
  • 4 hours 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 13 hours Climate change's fingerprints are on U.S. Midwest floods
  • 50 mins U.S.-China Trade War Poses Biggest Risk To Global Stability
  • 1 day Oil Slips Further From 2019 Highs On Trade Worries
  • 2 hours Read: OPEC THREATENED TO KILL US SHALE
  • 23 hours Telsa Sales in Europe
  • 10 hours Modular Nuclear Reactors
  • 21 hours The Political Debacle: Brexit delayed
  • 32 mins European Parliament demands Nord-Stream-ii pipeline to be Stopped
  • 2 days Poll: Will Renewables Save the World?
Martin Tillier

Martin Tillier

More Info

Trending Discussions

History Tells Us What to Expect After Big Spike In Natural Gas

There are some things in life that I find perpetually puzzling. It eludes me why anybody cares in the slightest about any of the Kardashians, for example, and why is bacon packaged in such a way as to make getting to it a major undertaking? There are also some more substantial, or at least relevant, things that puzzle me, such as why natural gas futures occasionally spike to crazy highs then immediately drop back. In all these cases though, I have learned to accept the inexplicable, adjust, and learn what I can. I pay no attention to sites like TMZ so as to avoid Kardashian-related news, always reach for scissors when attempting to open bacon, and look to past action rather than logic to predict moves in natural gas.

(Click to enlarge)

Doing so in this case indicates that we can expect gas futures to drop even further from here before too long, even though logic suggests otherwise.

Let’s look at the logical case for moving higher.

Prices have already fallen over forty percent in a few weeks, but seem to have found a bottom and have been grinding upwards for a few days. To me, that is normally a buy signal as a continued retracement and accelerated move up would, in theory, be most likely from here. That is what happened in February of last year, but that followed a much less dramatic spike than the most recent one. To find more similar patterns we have to go back to the mother of all spikes in 2008, or the jump to over $6 in early 2014.

(Click…

Trending Discussions


Leave a comment

Leave a comment




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