• 4 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 7 minutes Oil prices forecast
  • 11 minutes Algorithms Taking Over Oil Fields
  • 14 mintues NIGERIAN CRUDE OIL
  • 9 hours How Much Oil Does Aramco Have?
  • 15 hours Spy&State: Huawei Founder Says Firm Does Not Spy For China
  • 55 mins Venezuela continues to sink in misery
  • 4 hours BofA Sees Oil at $35-70
  • 59 mins How Is Greenland Dealing With Climate Change?
  • 47 mins "Peace Agreement" Russia vs Japan: Control Over Islands Not Up For Discussion
  • 4 hours Socialists want to exorcise the O&G demon by 2030
  • 20 hours China's Exports Shrink Most In Two Years, Raising Risks To Global Economy
  • 6 hours China Car Sales Plummet: Can Musk Unshovel His Groundbreaking?
  • 16 hours Oil Slide Worries Traders. *relax* This Should Get Sorted by Year End.
  • 1 day protests in Canada over pipeline
  • 22 hours Bolsonaro Wins in Brazil
  • 40 mins WSJ: Gun Ownership on Rise in Europe After Terror Attacks, Sexual Assaults
  • 1 hour Regular Gas dropped to $2.21 per gallon today
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Natural Gas Sees Some Upside

Natural Gas Sees Some Upside

May Natural Gas futures rose sharply on April 7, putting the market in a position to breakout to the upside on the weekly chart, on increased speculation the severely glutted market has hit a bottom.

The market has been building a support base for several weeks. At first, the rallies were being generated by aggressive short-covering, which is understandable because the market was in a downtrend. However, the buying this week looks as if it was dominated by new longs rather than short-covering and position-squaring.

(Click to enlarge)

While the price action may be suggesting a bottom is forming, the fundamentals are still bearish. The U.S. Energy Information Administration said Thursday stockpiles grew another 12 billion cubic feet last week, a time of year when stockpiles usually fall. They are now 54 percent larger than they usually are at this time of year.

The current price action indicates that speculators could be betting on the possibility of big gains if they can press the upside enough to encourage some of the major short-hedgers to aggressively cover their positions.

Although the weekly EIA report showed another increase in stockpiles, supply appears to be falling from a record pace and consumption could be much higher than usual this April, luring some bullish speculators into the market.

The reason for the increased consumption in April and the market’s second-best daily percentage performance of the past two months…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



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