With high natural gas production and a historic warm winter, where are the natural gas futures trading profits?
Folks across the northern USA are reveling in the mildest winter in many years.
They are also using their furnaces less! Natural gas futures for April delivery have fallen from around $5.50 to around $2.25 per million BTUs (British Thermal Units).
The excess supply (nearly fifty percent higher than at this time a year ago) held by natural gas suppliers is in large part why prices have plummeted.
Weather forecasters tell us that the unseasonably warm weather will continue over the eastern United States through the end of March, the end of the “heating season.”
While near term futures reflect the current glut in natural gas supplies prices out a year for April 2013 delivery run about $3.30 for a million BTUs.
April 2014 futures are $3.74. In the longer term traders expect prices to rise again.
Thus April 2020 futures are around $5.20 per million BTUs.
Prices for physical delivery at the Henry Natural Gas Hub in Louisiana are considered a benchmark.
Next day delivery prices at the Henry Hub dropped by ten cents over just a week recently as a “real” northern winter failed to materialize this year.
Those who saw this coming and sold futures at old prices are reaping very nice natural gas futures trading profits.
There is little risk of insider trading upsetting this market as the fundamentals are out there for everyone to see.
Washington Is Happy
The United States has reclaimed its status as the world’s leading natural gas producer and may, indeed, resume its position as the world’s leading oil producer as new technologies fuel increased oil extraction from previously impossible formations.
The USA has reduced its dependence on foreign oil from 55% to 45% of crude oil consumption, a million barrels a day.
More fuel efficient cars and increased insulation of homes have also helped reduce energy requirements.
On the other hand the US economy is still just coming out of the worst recession in 75 years.
When factories start humming they will need more fuel and both oil and natural gas prices will likely rise.
A distant but real problem that bothers Washington and drives oil prices is the risk of an armed confrontation with Iran over its nuclear power aspirations.
Although natural gas traders are also concerned about the economy and world affairs they try to adopt a dispassionate attitude.
To make natural gas futures trading profits a trader needs to follow fundamental and technical analysis of gas prices and not invest in what they “hope” will happen.
How Natural Gas Is Traded
Natural gas futures are traded on the NYMEX, the New York Mercantile Exchange.
It is traded in unites of 10,000 million BTU’s while prices are quoted per million BTUs.
A penny change in the quoted price is difference of $100 in natural gas futures trading profits.
Futures contracts are available for the 36 months from the current date.
2. To see a complete version of this presentation and
to obtain our free EBook follow this link:
http://portal.sliderocket.com/BLOUC/Natural-Gas-
Futures-Trading-Profits
Read the Forex Conspiracy Report for insights into
trading foreign currencies. Get your copy at
http://portal.sliderocket.com/BLOUC/Natural-Gas-
Futures-Trading-Profits
www.ProfitableTradingTips.com
3. With high natural gas production and a historic
warm winter, where are the natural gas futures
trading profits?
www.ProfitableTradingTips.com
4. Folks across the northern USA are reveling in the
mildest winter in many years.
They are also using their furnaces less! Natural gas
futures for April delivery have fallen from around
$5.50 to around $2.25 per million BTUs (British
Thermal Units).
www.ProfitableTradingTips.com
5. The excess supply (nearly fifty percent higher than
at this time a year ago) held by natural gas suppliers
is in large part why prices have plummeted.
www.ProfitableTradingTips.com
6. Weather forecasters tell us that the unseasonably
warm weather will continue over the eastern United
States through the end of March, the end of the
“heating season.”
www.ProfitableTradingTips.com
7. While near term futures reflect the current glut in
natural gas supplies prices out a year for April 2013
delivery run about $3.30 for a million BTUs.
www.ProfitableTradingTips.com
8. April 2014 futures are $3.74. In the longer term
traders expect prices to rise again.
Thus April 2020 futures are around $5.20 per million
BTUs.
Prices for physical delivery at the Henry Natural Gas
Hub in Louisiana are considered a benchmark.
www.ProfitableTradingTips.com
9. Next day delivery prices at the Henry Hub dropped
by ten cents over just a week recently as a “real”
northern winter failed to materialize this year.
www.ProfitableTradingTips.com
10. Those who saw this coming and sold futures at old
prices are reaping very nice natural gas futures
trading profits.
www.ProfitableTradingTips.com
11. There is little risk of insider trading upsetting this
market as the fundamentals are out there for
everyone to see.
www.ProfitableTradingTips.com
12. Washington Is Happy
The United States has reclaimed its status as the
world’s leading natural gas producer and may,
indeed, resume its position as the world’s leading oil
producer as new technologies fuel increased oil
extraction from previously impossible formations.
www.ProfitableTradingTips.com
13. The USA has reduced its dependence on foreign oil
from 55% to 45% of crude oil consumption, a million
barrels a day.
www.ProfitableTradingTips.com
14. More fuel efficient cars and increased insulation of
homes have also helped reduce energy
requirements.
www.ProfitableTradingTips.com
15. On the other hand the US economy is still just
coming out of the worst recession in 75 years.
www.ProfitableTradingTips.com
16. When factories start humming they will need more
fuel and both oil and natural gas prices will likely
rise.
www.ProfitableTradingTips.com
17. A distant but real problem that bothers Washington
and drives oil prices is the risk of an armed
confrontation with Iran over its nuclear power
aspirations.
www.ProfitableTradingTips.com
18. Although natural gas traders are also concerned
about the economy and world affairs they try to
adopt a dispassionate attitude.
www.ProfitableTradingTips.com
19. To make natural gas futures trading profits a trader
needs to follow fundamental and technical analysis
of gas prices and not invest in what they “hope” will
happen.
www.ProfitableTradingTips.com
20. How Natural Gas Is Traded
Natural gas futures are traded on the NYMEX, the
New York Mercantile Exchange.
www.ProfitableTradingTips.com
21. It is traded in unites of 10,000 million BTU’s while
prices are quoted per million BTUs.
A penny change in the quoted price is difference of
$100 in natural gas futures trading profits.
www.ProfitableTradingTips.com
22. Futures contracts are available for the 36 months
from the current date.
Companies in the energy business may well take
physical delivery of natural gas.
www.ProfitableTradingTips.com
23. Traders in search of natural gas futures trading
profits will exit their contract at the most opportune
time price to contract expiration, taking their profit
or loss.
A margin account is required for trading natural gas
futures.
www.ProfitableTradingTips.com
24. As with all profitable futures trading, do not trade if
you do not understand what you are doing.
www.ProfitableTradingTips.com
25. For more insights and useful information regarding
stock, options, commodities, and futures trading
visit www.ProfitableTradingTips.com.
