How low can natural gas go?

Discussion in 'Commodity Futures' started by buttermarket, Feb 10, 2020.

  1. bone

    bone ET Sponsor

    You can say the same thing about a million consumer items - televisions, integrated circuits, etc. etc..

    I challenge your premise that HH NG at $1.78 is a loss leader. To be specific - the technology and equipment costs to bring Natural Gas to market in the late 1990's (specifically Gulf of Mexico offshore drilling rigs) was by any metric more expensive than current fracking costs.

     
    #11     Feb 11, 2020
  2. TraDaToR

    TraDaToR

    Waha went negative in 2019 I think. You were paid to take it.
     
    #12     Feb 11, 2020
    bloomberg1 likes this.
  3. Here4money

    Here4money

    dunno, but readying to offload my hydrocarbon positions and loading up on alternatives, even if I've missed the boat for the year.
     
    #13     Feb 12, 2020
  4. I'm not a nat gas trader, but I dabbled a few months ago and bought a few LEAPS puts ATM that are now up about 60 percent. Wondering if I should take my profits, in case of a price spike, or hold on, at least untill just before hurricane season.
     
    #14     Feb 16, 2020
  5. Overnight

    Overnight

    If you are not a NG trader but dabbled and are now up 60%, then take your profits now and see how hurricane season might affect those prices. Remember, hurricane season starts on June 1st, so it is a bit away.
     
    #15     Feb 18, 2020
  6. themickey

    themickey

    How does hurricanes affect NG?
     
    #16     Feb 18, 2020
  7. TraDaToR

    TraDaToR

    Just took a few contracts long H/J yesterday. The OI is still high on H so there must be a lot of shorts who still need to roll. If it finds momentum...
     
    #17     Feb 19, 2020
  8. Overnight

    Overnight

    Exactly. That is what I was asking dcwriter...If you do not know how hurricane season may affect their prices, then better to take profits now and watch NG though the hurricane season, to see how it affects them. This way next year, if he is in the same predicament, he will have a better gauge with which to decide if he should hold on for longer, or take profits now.
     
    #18     Feb 19, 2020