This morning’s price action in natural gas dropped over 4% despite last week’s draw of 228 billion cubic feet against analysts’ expectations of 222 billion cubic feet and 144 cubic feet the prior year.
China is becoming one the biggest energy consumers, giving the U.S. a run for its money, or should I say energy.
Russia’s state-owned natural gas giant Gazprom (OGZPY, quote) will take over natural gas trading and storage businesses it jointly owns with the world’s largest chemical company, Germany’s BASF (BASFY, quote), as part of an asset swap meant to avoid further winter supply disruptions to Europe that have occurred in recent years.
Many news outlets are suggesting natural gas has put in a bottom and crude oil has put in a top. The problem I have with those circulating this theory is that they are not in the thick of things in the oil patch. They are not out there getting their hands dirty on the stuff.
Would you take this trade? Trader Kip is selling a gallon of gasoline for $10.00. His asking price is trading at a premium of more than 100% to the indicative value of $4.00.
Coal and coal-producers have been hit hard over the past year as a glut of natural gas in North America drives utility switching, and slower growth in China threatens demand.