How low can natural gas go?

[bone]

You can say the same thing about a million consumer items - televisions, integrated circuits, etc. etc..

I challenge your premise that HH NG at $1.78 is a loss leader. To be specific - the technology and equipment costs to bring Natural Gas to market in the late 1990's (specifically Gulf of Mexico offshore drilling rigs) was by any metric more expensive than current fracking costs.

storage cost and limted storage.. Why store it if the price is less than cost. that is capitalism, you shut production. these companies are using cashflow to pay debt servicing cost which eventually lead to bankruptcy. the longer they stay in business the more money they lose. they think natural gas prices will recover, it won't until all these suppliers stop giving natural gas below cost. that is the efficiency of capitalism, nobody does nothing for free or lose money doing it..or it's a 'charity' or known as non-profit organization. and they should get charity status. and tax deductiable.

 

[TraDaToR]

Are you asking Henry Hub only, some basis points can conceivable go to 00.00

dragging Henry to lows never seen before, Handle123 will know the answer tho!

Waha went negative in 2019 I think. You were paid to take it.

 

[Cuddles]

dunno, but readying to offload my hydrocarbon positions and loading up on alternatives, even if I've missed the boat for the year.

 

[dcwriter2]

I'm not a nat gas trader, but I dabbled a few months ago and bought a few LEAPS puts ATM that are now up about 60 percent. Wondering if I should take my profits, in case of a price spike, or hold on, at least untill just before hurricane season.

 

[Overnight]

I'm not a nat gas trader, but I dabbled a few months ago and bought a few LEAPS puts ATM that are now up about 60 percent. Wondering if I should take my profits, in case of a price spike, or hold on, at least untill just before hurricane season.

If you are not a NG trader but dabbled and are now up 60%, then take your profits now and see how hurricane season might affect those prices. Remember, hurricane season starts on June 1st, so it is a bit away.

 

[themickey]

If you are not a NG trader but dabbled and are now up 60%, then take your profits now and see how hurricane season might affect those prices. Remember, hurricane season starts on June 1st, so it is a bit away.

How does hurricanes affect NG?

 

[TraDaToR]

Just took a few contracts long H/J yesterday. The OI is still high on H so there must be a lot of shorts who still need to roll. If it finds momentum...

 

[Overnight]

How does hurricanes affect NG?

Exactly. That is what I was asking dcwriter...If you do not know how hurricane season may affect their prices, then better to take profits now and watch NG though the hurricane season, to see how it affects them. This way next year, if he is in the same predicament, he will have a better gauge with which to decide if he should hold on for longer, or take profits now.

 

[maxinger]

Natural Gas on Verge of Multiyear Bull Run: Equinor's Potter

In this edition of "Futures in Focus," Nick Potter, Equinor head of North American gas trading, sees natural-gas production "falling off a cliff." He speaks on "Bloomberg Markets." (Source: Bloomberg)
November 12, 2020


4 days later ...


Natural Gas Is Worst Performer Among Top Commodities on Weather
By Gerson Freitas Jr
U.S. natural gas futures plunged the most in more than a month, making the fuel the worst performer among major commodities, as milder autumn forecasts stoked concern that a warm winter will crush heating demand.
November 16, 2020



anyway, day traders love trading NG.
Most likely it should be great for day trading for the next
few days / weeks

 

[bone]

Over the Winter (and the Summer for that matter) Natural Gas is all about the weather forecast.

When I traded Commercial Energy, we had a bespoke meteorological firm on retainer.