Followers | 689 |
Posts | 143817 |
Boards Moderated | 35 |
Alias Born | 03/10/2004 |
Tuesday, September 28, 2021 8:18:57 PM
By: Bloomberg | September 28, 2021
• Natural gas futures extended a massive rally in the U.S. as growing fears of a global supply crunch this winter drove speculative buying.
Gas for October delivery surged as much as 10% and surpassed $6 per million British thermal units for the first time in seven years before paring gains. The expiration of the October futures contract on Tuesday added fuel to the rally as traders closed out bearish positions ahead of the colder months.
“It seems that all the shorts that needed to get out, are now out,” said Dennis Kissler, a senior vice president at Bok Financial Securities. The trader said he “wouldn’t feel comfortable” holding $6 gas through October and November without any major weather events, though any correction in prices should continue to attract buyers “until the winter threat is over.”
Prices for the heating and power-generation fuel are skyrocketing globally amid mounting concern that inventories won’t be able to meet demand in the northern hemisphere this winter. Supplies are particularly tight in Europe and Asia, but the U.S. is also facing potential constraints as exports rise and gas producers keep a lid on output in response to pressure from investors to reduce debt and boost share buybacks.
“We’ve had a lot more spec buyers coming in,” Gary Cunningham, director of market research at Tradition Energy, said in an interview. He added that $9 and $10 options for January and February are trading actively and at a big premium, suggesting the market has still upside even though the supply-demand balance doesn’t justify prices at those levels.
The so-called widowmaker premium for gas delivered in March versus April -- essentially a bet on how tight supplies of the fuel will be at end of winter -- has climbed to $1.458, the highest for this time of year since 2005.
Energy prices are also surging in Europe, with Dutch front-month gas futures climbing as much as 12% Tuesday.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
FEATURED Cannabix Technologies and Omega Laboratories Inc. Advance Marijuana Breathalyzer Technology - Dr. Bruce Goldberger to Present at Society of Forensic Toxicologists Conference • Sep 24, 2024 8:50 AM
FEATURED Integrated Ventures, Inc Announces Strategic Partnership For GLP-1 (Semaglutide) Procurement Through MedWell USA, LLC. • Sep 24, 2024 8:45 AM
Avant Technologies Accelerates Creation of AI-Powered Platform to Revolutionize Patient Care • AVAI • Sep 24, 2024 8:00 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM