Natural gas prices continued their recent recovery and sharply rose during last week again. This recovery comes after oil prices plummeted last week. There weren't any sharp turns in the fundamentals of the natural gas market so this rally might not last long. Keep in mind that natural gas storage is still high: According to the recent NG storage report, there was a 28 bcf injection; the current natural gas storage is 49.9% above the 5-year average.
Following the sharp movement in natural gas prices, the gap between future and spot also shifted during the week between Contango and Backwardation; it reached a weekly average of $0.07/mmbtu.
During last week the Henry Hub spot price rose by 9.48% while the future price (June delivery) decreased by 2.56%. During April, natural gas spot price increased by 6.57% and the future price (May delivery) by 9.86%.
Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. Forex Capital Markets LLC. will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
English
Español
Français
中文
Deutsch
Italiano
العربية
Sverige
Ελληνικά
Go to Profile
Mark as Read
