Natural gas prices surging… CNBC – Commodity Research Group

October 8, 2018 by Jim Colburn Leave a Comment

Here is what’s been going on in natural gas (the lower chart is implied volatility):

Tom DiChristopher at CNBC has a nice piece explaining why, here:

”On the one hand, U.S. natural gas production is rising at a record-breaking pace of about 9 billion cubic feet per day. But gas demand for power generation is also at a record. Three new U.S. liquefied natural gas export facilities are scheduled to open through the first quarter of 2019, gas-consuming industrial projects are coming online and new connections are slated to deliver U.S. supplies to Mexican power plants.

“These offsetting factors point to a gas market that will balance on a knife’s edge this winter, with little spare room on either side,” according to Cohen.”

(The chart is from Barchart.com…)

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

Reader Interactions

Leave a Reply Cancel reply