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Natgas - the 12 months Strip


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I am hearing from some stateside sources,

that massive amounts of Natgas has been discovered in recent 1-2 years,

and this may keep a lid on NG prices for a long time

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I am hearing from some stateside sources,

that massive amounts of Natgas has been discovered in recent 1-2 years,

and this may keep a lid on NG prices for a long time

 

 

Does anyone know if there is a link between NatGas and Crude Oil, in that the former tends to follow patterns by oil? I have read the odd clippet of info on this but would be interested if anyone has charted any correlations and has any evidence of this.

 

Gas is not as readily transportable as oil and the markets are more localised, rather than global. So the gas price is Europe may be affected by the Ukraine / Russia stand-off and supply constraints, but NYMEX is north american centric I guess. My question is though whether or not NYMEX is affected by contraints elsewhere in supply globally?

 

Looking at the charts for NGAS it does seem to have bottomed out and consolidating nicely for a potential upward movement.

 

 

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Natgas - the 12 months Strip

chart

nymexstripdn0.gif

/see: http://www.igsenergy.com/images/nymex_strip.gif

 

 

Natural gas at 5.5 - so that support line has broken. Next level 2.5?

 

ng.gif

 

I ve put some money to play a bounce from 5.5, which is a 5 year low. I don't believe Natural gas will go straight down without some sort of bounce. Target 7. Lets see where this goes.

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Out of interest, I reckon.....

 

Jan 2010 Gas future is 60% above current contract

 

Jan 2010 Crude future is 86% above current contract

 

I don't use futures, but did the comparison out of interest cos of discussion on cost of carry on energy etfs - gas etf would seem to have less

 

Gas tempts me, but this thread has cautioned me [thanks guys]

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