Natural gas futures slumped on Thursday, despite a bigger-than-expected supply drawdown and the coming polar vortex that is expected to blanket North America in frigid temperatures. Although prices dropped more than 1% toward the end of the trading week, market analysts are still optimistic about natural gas due to a myriad of bullish factors. February natural gas futures tumbled $0.036, or 1.34%, to $2.653 per million British thermal units (btu) at 16:10 GMT on Thursday on the New York Mercantile Exchange. Natural gas is trading flat for the week, but it has been on a tear during the first two weeks of the calendar year, surging nearly 5%. According to the US Energy Information Administration (EIA), domestic inventories of natural gas fell by 134 billion cubic feet … [Read More...]

Futures for crude oil rose on Wednesday on the news that Saudi Arabia and Russia reached an agreement to keep OPEC+ oil output steady. The gains were limited, though, and the West Texas Intermediate grade was swinging between gains and losses. In general, WTI crude was hanging near the psychologically important $50 level. Saudi Arabia agreed to a voluntary cut of 1 million barrels per day in February and March to offset an increase in production from Russia and Kazakhstan. The increase will be rather mild — 75,000 bpd in February from both countries combined, and another one by 75,000 bpd in March. Market analysts are questioning, though, whether the cut will be enough to buoy prices. The new strain of coronavirus, discovered initially in Britain, is spreading across the … [Read More...]

Natural gas futures involved in choppy trading on Thursday after the US government reported a slightly smaller-than-expected drawdown in domestic supplies. Despite the lackluster movement on Thursday, investors have renewed their bullish sentiment in natural gas amid colder weather forecast and strengthening foreign demand. Can natural gas retest $3 in the first quarter? February natural gas futures edged up by $0.005, or 0.19%, to $2.689 per million British thermal units (btu) at 16:49 GMT on Thursday on the New York Mercantile Exchange. Natural gas prices have recovered since their consolidation at the beginning of December. In the first trading week of 2021, the energy commodity has advanced more than 6%. According to the US Energy Information Administration (EIA), domestic inventories fell by 130 billion cubic feet in the … [Read More...]

Two signals go to cash on next week’s open of trading based on the latest Commitments of Traders data: natural gas and silver.That means eight of my 10 signals based on the free weekly COT reports will be in cash.Only the S&P 500 and the 30-year Treasury bond are bullish.See my latest signals table for detailed numbers on trader positioning in all 10 markets to see if you can figure out what it all means.Good luck this week, and Happy Canada Day to Canadian readers.Also, Happy Fourth of July to U.S. readers later in the week. [Read More...]

Natural gas futures are looking to end a strong 2020 on a high note following a disappointing December performance. The energy commodity has been one of the top-performing assets this year, thanks to a mix of strengthening demand and a modest decline in production levels. But with a lack of freezing temperatures in the US, could natural gas start 2021 in the red? February natural gas futures rose $0.056, or 2.31%, to $2.478 per million British thermal units (btu) at 14:40 GMT on Thursday on the New York Mercantile Exchange. Natural gas will suffer a weekly loss of 3.1%, but the so-called bridge fuel will record a 13% surge in 2020. According to the US Energy Information Administration (EIA), domestic stockpiles of natural gas fell 114 billion cubic feet in … [Read More...]