• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 5 hours Sources confirm Trump to sign two new Executive orders.
  • 1 hour CV19: New York 21% infection rate + 40% Existing T-Cell immunity = 61% = Herd Immunity ?
  • 10 hours Why Wind is pitiful for most regions on earth
  • 3 hours In a Nutshell...
  • 5 hours No More Love: Kanye West Breaks With Trump, Claims 2020 Run Is Not A Stunt
  • 21 hours During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 9 hours A Real Reality Check on "Green Hydrogen"
  • 13 hours Why Oil could hit $100
  • 6 hours Better Days Are (Not) Coming: Fed Officials Suggest U.S. Recovery May Be Stalling
  • 3 days Joe Biden to black radio host, "If you don't vote for me you ain't black". That's our Democratic Party nominee ?
  • 1 hour Putin Paid Militants to Kill US Troops
  • 2 days Coronavirus hype biggest political hoax in history
Exxon May Finally Book Major Writedowns

Exxon May Finally Book Major Writedowns

ExxonMobil could write down the…

Oil Giant Considers Drastic Move As Pandemic Persists

Oil Giant Considers Drastic Move As Pandemic Persists

Anglo-Dutch oil major Shell is…

Editorial Dept

Editorial Dept

More Info

Premium Content

Natural Gas Is Ready To Rally

During all the chaos of the response to coronavirus, there has been one area of logic and sanity. Surprisingly enough, given its deserved reputation for massive volatility, the market in natural gas futures has resisted the temptation to follow the stock market and oil futures in overreacting massively to every bit of coronavirus-related news or data. It has, on the whole, moved logically based on long-term supply and demand factors, rather than the latest headlines.

Sure, natty did fall as stocks collapsed, beginning in late February, but that was a continuation of a downward trend that had started in November and that was being driven by oversupply and weak demand that had nothing to do with the pandemic. Similarly, it bottomed out in late March, at roughly the same time as stocks and oil, but the rebound in NG didn’t continue and accelerate past any logical endpoint as stocks did. There was no equivalent of insane speculation on bankrupt stocks here, and volatility has been reducing sharply for a while.

Natural gas, however, looks poised for a big move soon.

As you can see from the chart, NG has been trading in a decreasing range since that March low, forming a steep wedge pattern. A breakout from that is inevitable before long and when it comes, a big move in percentage terms looks certain.

Obviously, the most important question for traders is which side will give…will there be a breakout higher or a breakdown lower?

It…





Leave a comment

Leave a comment




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