Natural gas futures how to trade

Rakesh Upadhyay is a writer for US-based Divergente LLC consulting firm. Natural gas ended March with almost a 14 percent gain, but lost For traders, Mother Nature adds to the unpredictability and she can be a formidable foe, playing an important role in determining demand for natural gas, as around 50 percent of U. As such, natural gas traders should not only understand the nitty gritty of supply and demand, they have to keep a close eye on the weather forecast as well.

How to Start Day Trading Natural Gas

Natural gas prices are cyclical in nature. Demand is highest during the winter months December-February and after a lull, demand picks up again during the summer months July-August.

During the rest of the year, demand is lower due to milder weather conditions. According to the weekly U. However, inventories are 68 percent higher compared to the same period last year, and 52 percent higher than the five-year average. Nearly 30 Oil Tankers in Traffic Jam Off Iraqi Coast. According to the EIA, natural gas consumption in was This increasing demand is buoyed by higher demand from the electric power sector, chemicals, and fertilizer sector.

Oil Stages Comeback On Bullish EIA Data. When supply is unable to meet the demand, prices increase.

Production in averaged Due to the falling rig count and lower natural gas prices, the EIA expects growth to slow to 0. The uptrend is expected to start by May as shown in the chart above. Are The Saudis And Russians Deliberately Sabotaging Doha? At the end of the day, natural gas prices will continue to remain volatile, reacting to weather-related news and any news of a major supply disruption. The massive drop in rig counts and the struggling natural gas producers have put a floor beneath the prices; however, the increased efficiency and resilience of the existing suppliers and additional supply to be commissioned continue to put a lid on the prices.

Under such circumstances, prices are likely to trade in a wide range until the fundamentals of supply and demand are balanced. Traders should utilise the trading range to take short-term positions instead of a long-term view.

Nonetheless, due to depressed prices, any adverse news can push prices considerably higher. Is The Golden Age Of Gas Nothing More Than A Bubble? Can Oil Come Back From Its Longest Losing Streak In Years? Getting Left Behind In The Renewable Race?

Natural Gas Trading Strategies | wunesajoc.web.fc2.com

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Have Natural Gas Prices Hit A Bottom?

Natural gas prices have been…. Home Energy Natural Gas.

Rakesh Upadhyay Rakesh Upadhyay is a writer for US-based Divergente LLC consulting firm. Natural Gas Trading Strategies By Rakesh Upadhyay - Apr 08, , 7: Here is how to play it", "articleBody": By Rakesh Upadhyay for Oilprice. Oil Stages Comeback On Bullish EIA Data When supply is unable to meet the demand, prices increase.

Oil Stages Comeback On Bullish EIA Data Huge Fire Erupts at ExxonMobil Refinery Near Houston. Next Post Is The Golden Age Of Gas Nothing More Than A Bubble? Related posts The Most Lucrative Real Estate On The Planet Why Is Saudi Arabia Desperate For Higher Oil Prices?

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