Natural gas prices continue to gain momentum in April. May TTF Gas Futures rose from lows of 39.79 Euros per MW to 51.37 Euros on April 3. Natural Gas is regaining its role as a primary fuel source for manufacturing since its prices dropped to an attractive level. Rising demand in Asia and China, in particular, largely contributed to the upside.
Prices received additional traction after some members of the Organisation of Petroleum Exporting countries announced additional production cuts of 1.65 million barrels per day on top of the previously agreed cut of 2 million bpd, which will start in May and last until the end of 2023. This decision boosted the Brent crude prices benchmark above $85 per barrel, targeting $90 per barrel. In this sense gas became even more attractive as alternate fuel.
The gas prices rally may continue throughout the coming months, supported by the above-mentioned drivers. Fears over declining gas supplies from Russia and due to a dry summer may contribute to the rising prices. Goldman Sachs and SEB AB analysts warn that prices may rise by double the amount before the end of the gas reserves replenishment season is over. Gas reserves in Europe were recorded to be filled by 56% on March 29, and this is the highest level for this date in more than a decade. Thus, gas prices are less prone to rise compared to crude.
Oil inventories in the United States, Purchasing Managers’ Index (PMI) readings in China and Non-Farm Payrolls report this Friday will become important milestones for gas prices this week. Gas prices are likely to fluctuate between 41.5 Euros to 53 Euros per MW this week. If the resistance at 53 Euros is broken, prices may continue to move up towards 55 Euros per MW.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69.66% 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. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2023 TeleTrade-DJ International Consulting Ltd
This website is operated by Teletrade-DJ International Consulting Ltd, which is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11. Teletrade-DJ International Consulting Ltd is located at 88, Arch. Makarios Avenue, 2nd floor, Nicosia Cyprus.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69.66% 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.