The price of Nat Gas is very high
The price of Nat Gas is very high…
Nat Gas prices bottomed in April at about 1.90, and seen a big rally since then, Wednesday Nat Gas traded near its highest price of Y 2012.
That action could lead to one of the best Short-selling opportunities of the year
Natural Gas is trading near its 2012 high
The US is sitting on a huge supply of Nat Gas, and all of the US Nat Gas storage facilities are filled to capacity, and Crude Oil producers are just letting thier Nat Gas by-product escape into thin air now.
30 Days FREE of the most advanced research platform ever Thomson Reuters Eikon
The US Energy Information Administration reported last week that Nat Gas inventories reached a record-high 3.92 trillion cubic feet. That’s 3% above the record storage amount achieved last December, it is about 7% higher than the 5 yr average storage amount for this time of year.
All that supply should have forced prices lower in here, but Nat Gas is trading at its highest price of the year. Something just doesn’t make sense.
So 1 or 2 things can happen to balance out the pricing.
A brutal winter, consumers could burn up the excess Nat Gas inventory, thus justifying the high prices.
Nat Gas prices could acknowledge the current supply glut, and prices would fall.
The US had far more supply than demand last Winter too. And as seen in the chart above prices dove in response, if there is action like that this year, shorting Nat Gas could be a hugely profitable trade. Stay tuned…
Related Articles
OPEC weekly Crude Oil price hits fresh record high
December 7th, 2010
OPEC Price Average Increasing
November 9th, 2010
OPEC: Crude Oil price taps new high
April 11th, 2011
More News
Heffernan Capital Management
Linda Johnson,
Business Development Director – Private Client Group,
Sales@Heffcap.com
Singapore
3 Raffles Place #07-01
Bharat Building Singapore 048617
Tel: +65 6329 6408
Fax: +65 6329 9699
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
1 of 6
USD/ZAR South African Rand Outlook
Shayne Heffernan takes a look at the USD/ZAR
USD/ZAR closed above the upper band by 10.6%. Although prices have broken the upper band and an upside breakout is possible, the most likely scenario is for the current …
CommentaryInvestor Services
Best Hedge Funds 2013
Working with some of the World’s largest financial institutions HCM’s goal is to provide portfolio returns that exceed the S&P 500 Index benchmark while …
UAE Economy Seeing a Spring Boom
HBC
Driven by stable high Crude Oil prices, tourism, diversification and a liberal trade policy, the United Arab Emirates (UAE) witnesses an unprecedented …
Aston Martin DB4GT hammered for $4.9-M on the Weekend
A 1-Off Aston Martin DB4GT fetched a world record price of £3,249,500, ($4.9-M) the highest ever price paid …
The Hot List
Enviro-Serv Inc (OTCMKTS:EVSV), Medical Marijuana Inc (OTCMKTS:MJNA)
Enviro-Serv Inc (OTCMKTS:EVSV)
EVSV had a stellar dy yesterday, ut it looks like it is just the begining of big things, good …
shoutbox
Guest: bztg, come on shane, lite this puppy up. been waiting too long lets go!!!
Tue, 04/30/13 | 0 Comment
779 
82 
Guest: gsat get it now. if u snooze u lose
Fri, 04/19/13 | 0 Comment
1191
116
