• 6 minutes Corporations Are Buying More Renewables Than Ever
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 23 minutes Starvation, horror in Venezuela
  • 5 mins Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 1 day Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 23 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 24 hours Saudi Fund Wants to Take Tesla Private?
  • 1 day Mike Shellman's musings on "Cartoon of the Week"
  • 2 days Venezuela set to raise gasoline prices to international levels.
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 2 days Pakistan: "Heart" Of Terrorism and Global Threat
  • 1 day Are Trump's steel tariffs working? Seems they are!
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 17 hours Why hydrogen economics does not work
  • 6 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 16 hours China goes against US natural gas
Alt Text

The Shale Boom That Will Never Happen

Andres Manuel Lopez Obrador has…

Alt Text

Iran Sanctions Could Backfire On U.S. Drillers

After the U.S. announced new…

Alt Text

Southern Company Just Raised Cost Estimates For This Megaproject Again

Southern Company's subsidiary announced yet…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

This Might Be The Time To Pick Up NatGas Stock

With all of the focus on the price of oil over the last few months the gyrations in the price of the other product from fracking, natural gas, have often been overlooked. It has, however, been a wild ride. The increased supply in the commodity combined with the inability to export and a warm start to the winter season caused U.S. natural gas to collapse even more spectacularly than oil, but it seems we may finally have found a bottom. If that is the case it is worth looking at how traders can play that story.

(Click to enlarge)

From a high of 6.49 in February of 2014, natural gas futures lost close to 75 percent, dropping to 1.68 in December of last year, and then bounced to start this year around 2.50. Despite colder weather, however, over supply has remained the focus of the market, and gas futures have dropped back to below $2 this week.

At these levels, many may be tempted to initiate a long term trade that involves some kind of a bet on higher natural gas prices in the future. In many ways, though, that is not as easy as it sounds. Playing futures is one option, but the leverage involved makes that difficult to do in a trading account for any length of time. The margin requirement would seriously dent your available liquidity for other trades and the need to roll over contracts makes it less than ideal for the longer term. To some extent that can be mitigated by using the EMini Natural Gas contract (QG) that requires less margin, but the rollover…

To read the full article

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

RegisterLogin

Trending Discussions





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