Post by
farmboy75 on Oct 30, 2020 2:21pm
Nat gas just hit 3.40
And VET pruduces lots of it , and winter is just starting. Nat gas seems to have decoupled from oil and is running ahead nicely. With less wells being drilled in the US there is also less asociated nat gas being produced also. Not sure how nat gas prices are running in europe , anyone ? Also I dont know how much we have hedged or locked in ? GLTAL
Comment by
Backinblack1000 on Oct 30, 2020 8:43pm
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Comment by
mnztr on Oct 30, 2020 9:07pm
The real driver is LNG prices. The N. American LNG industry was created because of the massive NG surplus here from fracking. Now that fracked oil activity has died off, NG byproduct is not being produced. Also LNG prices in Asia have started to soar, so our NG price gets linked to the LNG market as LNG exporters seek supply to liquify and export.
Comment by
mnztr on Oct 30, 2020 9:18pm
To put it into perspective LNG is 7.50 in Asia vs 3.40 Nymex. out of that 120% spread you need to liquify and transport to Asia... but that market is definitly competing with NG and bidding up the price .
Comment by
mnztr on Oct 30, 2020 9:27pm
NG to LNG conversion is 1.50-2/unit so $5.50 still leaves HUGE potential profit in Asia and Asian prices are still rising. With Nord Stream 2 stalled, and higher prices in Asia, Europe will have to compete for LNG resulting in higher NG prices there as well. Europe only produces about 30% of its own NG, so its Putin or LNG or freeze.
Comment by
Backinblack1000 on Oct 31, 2020 9:15pm
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Comment by
JohnFriesen on Nov 01, 2020 7:23am
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Comment by
Backinblack1000 on Nov 02, 2020 10:19pm
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