#natgas some sudden surge in prices. Seems like it was caused by a major producer announcing massive production cut. Some short squeeze as well. But production cuts will take time to take effect. The rally is enticing but probably a wrong move to go long now.
Seems like price will stay low for a 2-3 weeks until production cut start to take effect. Seems like a good time to go long in early to mid March. Hold it thru the spring. And see when panic start when summer get real hot. #natgas 1.580
More news suggesting #natgas prices too low to sustain production. Production cut has began. LNG might come back up soon tho global demand uncertain. Production cuts might overshoot if demand rise rapidly in summer. Might see the first ever withdrawal from summer.
If #natgas price continue to go lower, we might see a plunge in production. Oil producer might just flare it on site rather than spending the money sending those natgas byproducts to a scrubber to clean it up before storage. Plus what if US had early and long summer?
Looks like Biden ban on lng was thrown out of the window by congress. Feels like a double edge sword. It can either create more demand or create incentive for producer to keep producing #natgas
Looks like #natgas low price is causing some drillers to go bankrupt and cutting production. Like always.. the solution to low prices is low prices itself. 1.608 feel like this the bare minimum that producer are willing to bare with. Anything lower, it will cause bankruptcy
What is summer come early and start scorching USA. Electricity for air conditioning might shoot up. If renewables are also low, natgas demand ^, prices also ^
Winter will formally ends on 20 March. Spring will start and last for another 3 months till 20 June before summer heat begin. #natgas price likely to stay low till then. Still about 6 weeks left for winter, still no sign of arctic blast yet
Really crazy downward selling of #natgas. Unfortunately fundamental is quite bearing. No sign of arctic blast, no sign of production decline. LNG ban still yet to be reversed. Feel like max pessimism. 1.686
The number of rig is not increasing. Existing rigs have to maintain same amount of production which is difficult. Just a matter of time that production will go down #natgas
Some report of LNG picking up pace. Adding some much needed #natgas demand to stem this supply glut. Free port rumoured to be up fully next week.. hmm.. but with winter coming to an end. March and April going to be real mild. May to sept things will get hot.
So it might not matter is #natgas price are low. But natgas coming from oil producer need to be scrubbed to remove water and corrosive stuff to protect their pipes. Surely, there will be a floor to the prices to pay for these scrubbing. Or producer might just burn on-site
But who knows.. #natgas producer might have such strong financial that they would decide to hang on for another two years. Forcing price low for very long time. Good amount of #natgas are byproduct of oil drilling.
A extremely low price bankrupting producer, causing rigs to be shut and production to tank. That is probably the next salvation that I can see for #natgas long.
Many #natgas producer are holding on at high production despite lower prices because of a number of upcoming LNG export. They wanted to sell abroad to Europe. However Biden decided to ban lng export. This might cause them to lose hope and began shutting down some rig.