CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

NATURAL GAS

Special Reports - 04/10/2022

04 October, 2022

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

NATURAL GAS weekly uptrend opportunity based On 1.00 Lot Calculation:

NATURAL GAS GLOBAL MARKETS:

  • LARGEST NATURAL GAS SUPPLIER IN THE WORLD (LNG + PIPELINE): 1. RUSSIA (173.81 million tons); 2. USA; 3. QATAR; 4. NORWAY; 5. AUSTRALIA;
  • LARGEST NATURAL GAS IMPORTER IN THE WORLD: CHINA (121.99 million tons)
  • CHINA’S LARGEST NATURAL GAS SUPPLIER: 1. AUSTRALIA (~26%); 2. TURKMENISTAN (~20%); 3. RUSSIA (~10%).
  • E.U. IMPORTS 45% OF NEEDED NATURAL GAS FROM RUSSIA (OF TOTAL 251.44 million tons): 113 million tons (average daily consumption: 32.85 million tons).
  • RUSSIA EXPORTS TO THE E.U. ACCOUNTS FOR 65% OF TOTAL EXPORTS: 113 million tons of 173.81 goes to the E.U.

US HURRICANE SEASON (June 1 to November 30):

  • RECENT HISTORY SHOWS THAT HURRICANES IMPACT THE OIL AND NATURAL GAS PRICES:
  1. HURRICANE “IDA” (August 26, 2021): NATURAL GAS ROSE FROM $3.943 TO $6.310 (+60.00%) WITHIN A MONTH. Ida's ferocious winds and storm surge made a direct hit on Port Fourchon, the nation's most important hub for the offshore industry in the Gulf of Mexico.
  2. HURRICANE “DELTA” (October 4, 2020): NATURAL GAS ROSE FROM $2.485 TO $3.391 (+36.05%) WITHIN A MONTH. Hurricane Delta shut most US offshore oil and gas output in 15 years.
  3. HURRICANE “IKE” (September 1, 2008): NATURAL GAS ROSE FROM $5.440 TO $7.186 (+32.10%) WITHIN A MONTH.
  4. HURRICANE “KATRINA” (August 26, 2005): NATURAL GAS ROSE FROM $9.190 TO $14.750 (+60.50%) WITHIN A MONTH. Hurricane Katrina caused severe damage to U.S. refinery and production capacity in the Gulf of Mexico.

*Please note that past performance does not guarantee future results

CURRENT:

  • BOTHE NORD STREAM 1 AND 2 ARE SERIOUSLY DAMAGED IN EXPLOSIONS. (September 26) Several European Union states have triggered emergency plans while they are trying to find alternative supplies, while Britain now faces a "significant risk" of gas shortages this winter. Germany also may not meet its gas-saving targets due to the colder than average temperatures.
  • Huricane Ian hasn’t demaged of major production facilities in the Gulf of Mexico, and output held around 103 Bcf/d and close to record levels during the past week.
  • German Chancellor Olaf Scholz secured just one shipment of LNG from the United Arab Emirates, with a non-binding agreement for more. The cargo of 137,000 cubic meters will be delivered by early 2023.
  • GERMANY CLOSER TO SIGNING LONG- TERM LIQUIFIED NATURAL GAS (LNG) DEALS WITH QATAR, BUT IT WILL NOT COME INTO EFFECT BEFORE 2026.
  • FREEPORT LNG to restart operation at full capacity in November 2022, instead of October. This will boost demand for US LNG by 2 billion cubic feet per day, which is 2% of US output.
  • Berkshire Hathaway Energy’s Cove Point liquefied natural gas (LNG) export plant in Maryland shut on Saturday (October 1) for annual maintenance that is expected to last about three weeks. Cove Point is designed to liquefy about 0.75 bcfd of gas into LNG.

PRICE ACTION: The Natural Gas prices rose to a record high of $15.780 in 2005. Currently is moving around $6.47 and if a full recovery to 2005 highs happens, this could provide an increase of around 141%.

NATURAL GAS, October 04, 2022
Current Price:6.47

NATURAL GAS

Weekly

Trend direction

UP

Resistance 3

9.00

Resistance 2

8.40

Resistance 1

7.70

Support 1

5.50

Support 2

5.20

Support 3

4.80

Example of calculation based on weekly trend direction for 1 Lot1

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

25,300.00

19,300.00

12,300.00

-9,700.00

-12,700.00

-16,700.00

Profit or loss in €2

25,526.55

19,472.82

12,410.14

-9,786.86

-12,813.72

-16,849.54

Profit or loss in £2

22,273.97

16,991.61

10,828.85

-8,539.82

-11,181.00

-14,702.58

Profit or loss in C$2

34,569.92

26,371.52

16,806.72

-13,254.08

-17,353.28

-22,818.88

1. 1 lot is equivalent of 10,000 units

2. Calculations for exchange rate used as of 13:40 (GMT+1) 04/10/2022

Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.

· You may wish to consider closing your position in profit, even if it is lower than suggested one

· Trailing stop technique can protect the profit – Ask your Client Manager for more details

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