Please disable Ad Blocker before you can visit the website !!!

Natural Gas SHORT

by SignalFactory   ·  April 27, 2020 | 08:19:23 UTC  

Natural Gas SHORT

by SignalFactory   ·  April 27, 2020 | 08:19:23 UTC  

Oil was not the first commodity to hit negative pricing in the current crisis. Gas in Texas went negative in January, and the global gas market was oversupplied even last year. Yet, perhaps, the long-term picture looks better for gas than oil.

For gas suppliers, 2019 was a tough year. A wave of new production came online, particularly liquefied natural gas (LNG) from the US, Australia, and Russia, setting a record for an annual increase in capacity: 38.8 million tonnes per year, in a global market of about 437 million tonnes. Another 70.4 million tonnes made final investment decisions last year, promising a further surge in supply.

Demand growth in China, the world’s second-largest LNG importer and biggest gas importer overall rose strongly but more slowly than in 2018. Demand in Japan, the leading LNG importer, fell. Surplus cargoes had to be dumped in Europe, where winter disruptions were feared over deadlocked negotiations between Russia and Ukraine concerning gas transit. But on the last day of the year, a five-year deal was reached, warding off any interruptions.

The European winter was the hottest ever recorded, reducing gas demand for heating. Storage entered the winter almost 100 percent full and was still 60 percent full by March when companies generally begin stocking up again. By then, the coronavirus pandemic was gathering speed, and electricity demand dropping. New York’s demand is down 10 percent, the UK’s by 15-19 percent.

From early March, following the collapse of the Opec+ deal, oil prices plunged, dragging down the price of LNG in many contracts in Asia, which are typically specified to oil. On Thursday, the Japan-Korea market (JKM), the leading Asian benchmark, fell to a record low $1.938 per million British thermal units, equivalent to about $11 per barrel of oil.

In western Europe and North America, gas has to re-establish its environmental credentials against environmentalist hostility. It can do this by leveraging recovery funding to build future industries. These include carbon capture and storage (CCS), to make gas a near-zero emission fuel. CCS is widely recognized as an essential part of the climate toolkit, but current projects need to scale up by some 15 times over this decade.

Germany, Japan, and Australia are among countries looking to create a market for hydrogen, a clean energy carrier, that can substitute for gas in heating networks, or be used as a fuel for ships and planes. The cheapest way of making low-carbon hydrogen is from natural gas with CCS.

The current situation is pretty grim for gas. But it may be further through its slump than oil since it was already in the downturn last year before the coronavirus showed up. With some smart and bold investments, it still can emerge from this crisis as the major future hydrocarbon.

The current situation is pretty grim for gas. But it may be further through its slump than oil since it was already in the downturn last year before the coronavirus showed up. With some smart and bold investments, it still can emerge from this crisis as the major future hydrocarbon.

Natural Gas SHORT (Sell)

ENTER AT: 1.701

T.P_1: 1.483

T.p_2: 1.015

S.L: 2.038

Natural Gas
All information on this website is of a general nature. The information is not adapted to conditions that are specific to your person or entity. The information provided can not be considered as personal, professional or legal advice or investment advice to the user. This website and all information is intended for educational purposes only and does not give financial advice. Signal Factory is not a service to provide legal and financial advice; any information provided here is only the personal opinion of the author (not advice or financial advice in any sense, and in the sense of any act, ordinance or law of any country) and must not be used for financial activities. Signal Factory does not offer, operate or provide financial, brokerage, commercial or investment services and is not a financial advisor. Rather, Signal Factory is an educational site and a platform for exchanging Forex information. Whenever information is disclosed, whether express or implied, about profit or revenue, it is not a guarantee. No method or trading system ensures that it will generate a profit, so always remember that trade can lead to a loss. Trading responsibility, whether resulting in profits or losses, is yours and you must agree not to hold Signal Factory or other information providers that are responsible in any way whatsoever. The use of the system means that the user accepts Disclaimer and Terms of Use. Signal Factory is not represented as a registered investment consultant or brokerage dealer nor offers to buy or sell any of the financial instruments mentioned in the service offered. While Signal Factory believes that the content provided is accurate, there are no explicit or implied warranties of accuracy. The information provided is believed to be reliable; Signal Factory does not guarantee the accuracy or completeness of the information provided. Third parties refer to Signal Factory to provide technology and information if a third party fails, and then there is a risk that the information may be delayed or not delivered at all. All information and comments contained on this website, including but not limited to, opinions, analyzes, news, prices, research, and general, do not constitute investment advice or an invitation to buy or sell any type of instrument. Signal Factory assumes no responsibility for any loss or damage that may result, directly or indirectly, from the use or dependence on such information. All information contained on this web site is a personal opinion or belief of the author. None of these data is a recommendation or financial advice in any sense, also within the meaning of any commercial act or law. Writers, publishers and affiliates of Signal Factory are not responsible for your trading in any way. The information and opinions contained in the site are provided for information only and for educational reasons, should never be considered as direct or indirect advice to open a trading account and / or invest money in Forex trading with any Forex company . Signal Factory assumes no responsibility for any decisions taken by the user to create a merchant account with any of the brokers listed on this website. Anyone who decides to set up a merchant account or use the services, free of charge or paid, to any of the Forex companies mentioned on this website, bears full responsibility for their actions. Any institution that offers a service and is listed on this website, including forex brokers, financial companies and other institutions, is present only for informational purposes. All ratings, ratings, banners, reviews, or other information found for any of the above-mentioned institutions are provided in a strictly objective manner and according to the best possible reflection of the materials on the official website of the company. Forex trading is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against merchants. Before each Forex investment, you should carefully consider your goals, past experience and risk level. The opinions and data contained on this site should not be considered as suggestions or advice for the sale or purchase of currency or other instruments. Past results do not show or guarantee future results. Neither Signal Factory nor its affiliates ensure the accuracy of the content provided on this Site. You explicitly agree that viewing, visiting or using this website is at your own risk.

Signal Factory is now on Telegram

make sure to join our Telegram channel now and you will not miss any update