• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 2 hours WTI @ $75.75, headed for $64 - 67
  • 10 mins The Dirt on Clean Electric Cars
  • 13 hours Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 7 hours Uber IPO Proposals Value Company at $120 Billion
  • 5 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 3 hours Trump vs. MbS
  • 14 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 11 hours COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 1 hour Coal remains a major source of power in Europe.
  • 21 mins EU to Splash Billions on Battery Factories
  • 7 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 10 hours Nopec Sherman act legislation
  • 3 hours Poland signs 20-year deal on U.S. LNG supplies
Alt Text

What’s Behind The Drop In Asian LNG Prices?

Asian LNG prices tanked on…

Alt Text

Are Natural Gas Prices Set To Spike?

Natural gas inventories have plunged…

Alt Text

Prices Soar As Natural Gas Inventories Hit Decade Low

Natural gas inventories in the…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

Choosing The Right Moment To Buy NatGas

I have made the point in these pages several times that sometimes, for a trader, square is the best position. There is often a feeling among those that trade, whether from home or in a dealing room, that they should always be doing something. I mean, markets move around all the time, right, so isn’t there always money to be made? Well, yes, but sometimes a market sets up and is poised for a move, it’s just not possible to predict in which direction. That is the case right now with natural gas.

(Click to enlarge)

Natural gas futures have now spent nearly three weeks trading in a range of $2-$2.20. There has been some good intraday volatility during that period for sure, but for those focused on swing trading rather than day trading it has been frustrating to see no follow through.

What is happening here seems to be essentially a battle between the past and the future. The recent past of natural gas in the U.S. has been well documented. The shale boom may have led to some oversupply in oil but it is nothing compared to what it did to natural gas. Production has increased dramatically over the last five years or so as the gas from the new wells has come on line and demand had no hope of keeping up. As a result prices collapsed from around $6.50 to under $2

(Click to enlarge)

The future, however, suggests that there may be some relief coming. As with oil the old adage of low prices being the cure for low prices has taken…

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