Natural Gas Update: Will Seasonality Rule This Year? - PowerPoint PPT Presentation

About This Presentation
Title:

Natural Gas Update: Will Seasonality Rule This Year?

Description:

It’s time for another natural gas update. Seasonal tendencies tell us this commodity should start rallying soon- but will it? – PowerPoint PPT presentation

Number of Views:26

less

Transcript and Presenter's Notes

Title: Natural Gas Update: Will Seasonality Rule This Year?


1
Commodity Trading Research
Natural Gas Update Will Seasonality Rule This
Year?
2
Welcome to Commodity Trading Research Your
premier site for fundamental and technical
analysis for profitable Commodity Trading. For
more info on Commodity Trading Research visit our
website www.CommodityTradingResearch.com
3
  • Get Your Free Report on the BEST Commodity
    Stocks!
  • Well tell you about this
  • Special Offer
  • at the end of the video!

4
  • Hi, My name is Justin and Im with Commodity
    Trading Research, today were reviewing our
    recently published article

5
  • Natural Gas Update Will Seasonality Rule This
    Year?

6
  • Despite historic volatility in equities the past
    few weeks, the natural gas market has been
    decidedly ho-hum. In fact, Id venture to say
    trading in the commodity is akin to watching
    paint dry.
  • Take a look for yourself

7
(No Transcript)
8
  • As you can see, natural gas has been stuck in a
    choppy trading range around 2.70 mmBtu since
    mid-August. Even though temperatures have been
    rather warm in key natural gas usage regions

9
  • the past few weeks, investors seem content with
    letting prices dwindle.

10
  • But that may change soon

11
  • You see, were entering the most bullish time of
    the year for natural gas. According to a 20-year
    seasonality study, natural gas tends to bottom in
    early September and rally through late December.

12
  • This seasonal rallycomes to fruitionbecause
    investors start pricing in the high demand winter
    heating season, which is right around the corner.

13
  • Will a seasonal rally take hold this year?

14
  • While its tempting to embrace the strong odds
    behind seasonal trends we have to be mindful of
    the current supply/demand balance. According the
    US Energy Information Administration (EIA) the
    market is still very well supplied.

15
  • In fact, for the week of August 28th there were
    3,193 billion cubic feet (bcf) of supply in US
    storage caverns. Thats 4 higher than the
    5-year average and 18.3 higher than last year.

16
  • Clearly, US natural gas explorers are still
    producing the commodity at a remarkable pace.

17
  • Heres the deal

18
  • In order for a sustainable natural gas rally to
    take hold, we need to see two things occur.
  • First of all,overall US natural gas production
    must slow meaningfully. And secondly, new demand
    must come online thats capable of reducing
    inventories substantially.

19
  • While we havent seen either of these factors
    happen just yet, were likely on the cusp of it.

20
  • How so?

21
  • I wont get into all the nitty gritty details
    today. However, I am putting the finishing
    toucheson a new report that outlinesthe
    potentially profitable situation in natural gas.

22
  • With the commodity trading near multi-year lows
    under 3 it will only take a few slight
    fundamental adjustments to send it sharply
    higher.

23
  • Under the right circumstances, we may see natural
    gas rally50 or more from current prices.
  • Be on the lookout for this FREE report as it will
    hit this website soon!

24
  • Want More from Commodity Trading Research.com?
  • Follow us on Social Media

25
  • Want more FREE information on Commodity Trading?
  • Commodity Trading Research.com

Get Your FREE Report Now
26
READ THIS FREE REPORT!
The 3 BEST Commodity Stocks for 2015 Trading
Success!
Click Here
Write a Comment
User Comments (0)
About PowerShow.com