UNG - Inventory bearish ... again ... -49B draw , Forecast
-67B , Previous week -75B ... this thing can`t catch a cold
snap ... but it did caught a KOLD ...
The way the inventory trends, whatever bounce
it gets, will be shorted... but this thing is wild and has
humiliated many traders before and will continue to do so ...
... and bankrupt some ... (Just google my local
hometown boy Brian Hunter and Amaranth fund for
entertainment)
Given this background, we circle back to the question of whether or
not robust gas production is sustainable. It partly depends on oil
and NGL prices. If those fall significantly (NGL prices have fallen
in recent months), gas production will decline. But perhaps more
importantly, wet and associated plays may not offer sufficient
production to satisfy the expanding gas demand in North America. If
that is the case, most dry gas wells will need prices between $2.70
and $3.20 to be profitable. Thus, producers of dry gas likely can't
keep financing new drilling, which means gas prices must rise above
the $3.00 barrier to attain enough production to meet demand.
UNG ... another day ...
UNG - Now that the widow maker did it's usual ...
Posted by mla127 on 14th of Feb 2024 at 10:14 am
UNG ... another day ... another down day ... lol ....
UNG - Inventory bearish ...
Posted by mla127 on 15th of Feb 2024 at 11:08 am
UNG - Inventory bearish ... again ... -49B draw , Forecast -67B , Previous week -75B ... this thing can`t catch a cold snap ... but it did caught a KOLD ... The way the inventory trends, whatever bounce it gets, will be shorted... but this thing is wild and has humiliated many traders before and will continue to do so ... ... and bankrupt some ... (Just google my local hometown boy Brian Hunter and Amaranth fund for entertainment)
Surprised supplies are not cutting
Posted by EdZ on 15th of Feb 2024 at 11:26 am
Surprised supplies are not cutting back. I doubt if they are making money at these levels.
Source: EIA Source: EIA
Given this background, we circle back to the question of whether or not robust gas production is sustainable. It partly depends on oil and NGL prices. If those fall significantly (NGL prices have fallen in recent months), gas production will decline. But perhaps more importantly, wet and associated plays may not offer sufficient production to satisfy the expanding gas demand in North America. If that is the case, most dry gas wells will need prices between $2.70 and $3.20 to be profitable. Thus, producers of dry gas likely can't keep financing new drilling, which means gas prices must rise above the $3.00 barrier to attain enough production to meet demand.
eia.gov
U.S. natural gas production reaches a new record despite low prices - U.S. Energy Information Administration (EIA)
speaking of natural gas, here's
Posted by matt on 15th of Feb 2024 at 11:44 am
speaking of natural gas, here's the NG futures, on 8 time frames with the MA ribbons and cycles to monitor if you are watching for a washout low
https://www.tradingview.com/chart/epRziFih/
tradingview.com
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