What can pull the rug from natural gas prices? [Video]
|The Russian/Ukraine crisis has been a terrible humanitarian crisis that has also created significant stress in energy markets. One of those markets that have seen significant gains over the last few months is natural gas. With Russia supplying nearly 50% of Europe’s gas supply and gas currently escaping out under the Baltic Sea after possible sabotage of the Nord Stream, the pressure has kept gas prices supported.
However, one development to look out for is any peace that develops between Russia and Ukraine. If there is a peace deal found then natural gas prices should immediately fall on relief that supply can come back into the market more freely. If you look at the seasonals you will notice that Natural Gas has a very weak seasonal period coming up. So, if there is an unexpected peace deal struck between Russia and Ukraine watch out for sudden Natural gas weakness in line with the weak seasonals.
Over the last 15 years, natural gas prices have fallen 11 times between October 01 and January 01. The average fall has been -13.63%.
Major trade risks: If there is no peace between Russia and Ukraine and Natural Gas supply continues to be disrupted we could see Gas prices buck their seasonal trend this year.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.