News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • #NOK, #NZD and #AUD are expected to be the most volatile G10 currencies vs USD over the next week with implied volatilities of 15.48, 11.48 and 10.91, respectively.
  • Join @DanielGMoss's #webinar at 9:45 PM ET/1:45 AM GMT for live date coverage of the #RBNZ rate decision here: https://t.co/4dH1BgErD1 https://t.co/pEuAN46VS1
  • The US Dollar, British Pound, and Euro will all be closely watching key geopolitical developments in North America (Powell testimony), the UK (Brexit talks) and Europe (EU summit). Get your market update from @ZabelinDimitri here:https://t.co/q4AJW6PTCu https://t.co/aAhCrBCBtX
  • Gold and silver are at risk of extending their slide from monthly highs as the lack of additional fiscal stimulus and rising geopolitical tensions underpin USD. Get your market update from @DanielGMoss here: https://t.co/sYF5pV9zrE https://t.co/04Czwv3PpW
  • #Nasdaq 100 Recovering? Biden-Trump #Election2020 Betting Spread Widens⬇️ https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/09/22/Nasdaq-100-Recovering-Biden-Trump-Election-Betting-Spread-Widens.html
  • Join @ddubrovskyFX 's #webinar at 8:00 PM ET/00:00 PM GMT to find out what information you can gain from knowing what other traders are buying or selling. Register here: https://t.co/Bb3CTCTm44 https://t.co/QaZzPd0K6D
  • The US Dollar is struggling against ASEAN currencies despite weakness in the S&P 500. Capital remains flowing into emerging markets, keeping USD under pressure, could this change? Find out from @ddubrovskyFX here:https://t.co/nwhy3XhE74 https://t.co/7nvijaAruu
  • Retail CFD traders have poked their head back into net bullish territory - an uncommon territory - in their net positioning for the $DJIA (Wall Street). Skeptical of a breakdown it seems https://www.dailyfx.com/sentiment?ref-author=Kicklighter&CHID=9&QPID=917719 https://t.co/g12EqBGkGh
  • The Nasdaq 100-tracking QQQ ETF saw more than -$3.4 billion leave its coffers on Friday. Get your #Nasdaq market update from @PeterHanksFX here: https://t.co/NZWg2XrEuD https://t.co/S9uxEGzJjJ
  • The $QQQ ETF recently saw its largest outflow, followed by its largest inflow since October 2000 What does this mean for the Nasdaq? Read more - https://www.dailyfx.com/forex/market_alert/2020/09/22/Nasdaq-100-Forecast-Exodus-from-Tech-ETF-Has-Worrisome-Historical-Parallel.html?ref-author=phanks&QPID=917701&CHID=9 https://t.co/bS0V5IsS6Z
Natural Gas and Crude Oil Trade Strategies using Storage Reports

Natural Gas and Crude Oil Trade Strategies using Storage Reports

2014-02-18 15:54:00
Research, Research Team
Share:
Natural-Gas-and-Crude-Oil-Trade-Strategies-using-Storage-Reports-0024_body_ngas1.jpg, Natural Gas and Crude Oil Trade Strategies using Storage Reports

The price of natural gas futures for March delivery hit as high as $5.38 per Million British Thermal Units (MBTU) last week after a surprise fall in its storage. Now investors are curiously eyeing the next storage report, due out Thursday February 20th. Meanwhile, crude oil futures remained broadly unchanged at the end of last week after an unexpected rise in US oil inventories.

The price of natural gas futures rallied more than 40 cents to $5.23 on Thursday following a report by the Energy Information Administration (EIA) that revealed an unexpected drop in US gas reserves by 237 billion cubic feet for the week of February 7th. The market was expecting a decline by only 234 billion cubic feet.

The EIA releases its natural gas storage report every week. The report shows the weekly change in underground storage facilities at both the regional and national levels. The weekly change consequently indicates the total injection or total withdrawal during a specific week. Generally speaking, a negative reading is seen as bearish for the price of natural gas and a positive reading is considered as bullish for natural gas prices. The next EIA gas storage report, for the week ending on the 14th February, is scheduled for release on Thursday at 15:30 GMT.

Natural-Gas-and-Crude-Oil-Trade-Strategies-using-Storage-Reports-0024_body_Image64.jpg, Natural Gas and Crude Oil Trade Strategies using Storage Reports

The winter season is about to end and it appears that the price of gas has seen the peak level of the current season. Therefore, selling is probably the best option as per a technical and fundamental outlook. If the EIA report on Thursday shows a further slump in natural gas storage, the price will tend to increase and that would be an ideal opportunity to sell gas at a higher price level with a stop loss placed around 5.73, which is the high of bearish pin bar on the daily timeframe.

Conversely, if the report shows an increase in gas storage, then you should open a sell position straight away without waiting for rallies; the stop loss must be the same, i.e. 5.73. Meanwhile, West Intermediate Texas (WTI) or light sweet crude oil futures for March delivery remained broadly unchanged after the EIA report for the week of February 7th, showing a surprise increase in crude oil inventories for that week. US Crude oil inventories rose by 2.67 million barrels during the first week of the current month, according to the report. The market was expecting an increase by 2.500 million barrels; hence the report beat the expectations.

Like with natural gas reports, the EIA releases its petroleum status report on a weekly basis. The report indicates the change in crude oil reserves held by the US, both domestically and abroad, over a specific week. Generally speaking, an increase in US crude oil inventories is seen as bearish for crude oil price and vice versa. The next EIA crude oil inventories report, for the week ending on the 14th of February, is due out on Thursday, February 20th, at 16:00 GMT.

Natural-Gas-and-Crude-Oil-Trade-Strategies-using-Storage-Reports-0024_body_Image65.jpg, Natural Gas and Crude Oil Trade Strategies using Storage Reports

The price of crude oil shall tend to increase if Thursday report shows a drop in US crude oil reserves and then you can consider selling around 101.70, which is a crucial resistance level. Conversely, if crude oil reserves again rise, then buying on dips can be a good option.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES