Nat Gas News – November 15, 2018

Nat Gas News – November 15, 2018

Why Natural Gas Prices Are Breaking Out

Forbes reported: Major disconnects between prices and fundamentals don’t last forever. And when these disconnects revert back to the fundamentals, prices can move quickly and investors can make a lot of money. I highlighted a disconnect in August, when I warned that a Natural Gas Price Spike May Be Looming. I covered the fundamentals of the natural gas market in the U.S., particularly noting the dependence on weather and storage. Typically, from late spring to early fall, natural gas production outpaces demand. This “injection season” is when natural gas storage levels build ahead of the higher demand winter season. When storage levels get too high, natural gas prices tend to fall. This is especially true when storage levels are high going into injection season. When that happens, investors can usually bet on soft natural gas prices for the rest of the year. The inverse is usually true as well. When storage levels are low, especially headed into winter, natural gas prices are usually rising. For more on this story visit forbes.com or click https://bit.ly/2zacI7S

Natural Gas Skyrockets As China Pledges Huge Supply Boost

Oil Price reported: With an eye on last winter’s natural gas supply debacle, Chinese state-owned energy giant CNOOC has pledged a 20 percent rise in gas supply, the company said on Tuesday. The company, one of three state-run oil majors, said that it will supply 24.6 billion cubic meters (bcm) of natural gas during the heating season that kicks off this week, up 20 percent year-on-year, to meet rising natural gas demand in the country. China is in the process of replacing over reliance on coal usage for both industrial and residential end users to offset rampant air pollution, particularly in its larger urban centers. By government mandate, at least 10 percent of the country’s energy mix needed for power generation by 2020 must be natural gas, with further earmarks set for 2030. CNOOC, the country’s largest oil and gas producer, said 6.1 bcm of natural gas will be supplied to seven northern provinces and municipalities, up 63.5 percent from last year. For more on this story visit oilprice.com or click https://bit.ly/2FrqyYX

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

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