Why do you trade NG on fundamentals? Perhaps 15-15% of contracts are traded by people actually in the business. The rest are speculators and their sentiment. Inventory overhang has been known for months and is baked in the low NG price.
A lof of US gas is now being exported to Canada since the US production is now closer to densely populated Canadian areas. Gas production in Canada is mostly our west while consumption is eastward - long pipeplines. However, NG is more used for home heating than power generation in Canada. So it's most likely more of a a winter thing.
Sandridge will be filing Chap 11. The problem is that you lose you wells if they don't not produce in some states.Also, that last thing creditors want are NG wells! They are stuck with shutting them or operating them for which they have no expertise.
Benzinga option alert at 14:43 ----- Option Alert: WUBA May16 55.0 Puts Sweep: 4240 @ ASK $3.50: 5038 traded vs 47 OI: Earnings 5/23 $56.05 Ref
But price is 50% cheaper. Inventory is baked in. Now, the prices will be dictated by injection levels. Markets does expect injections now as it does every year.
We just need to watch if the trajectory of the injections will surpass the 4k bcf october/november. Also if we start getting hot/muggy weather in the North-East, the excess NG will get burnt fairly quick. The market is now expecting injections as it does every year. It will simply be how small/large they are.
No fund wants this in his Q1 holdings statement. $ day weeks as well. Wednesday will probably be a good day to buy it.
He was stupid to take a board seat. Now he can't even make a move because he's an insider. He must be cringing at the information he now has access too.
5 years ago when those record inventories were the same, NG was selling at $4.00.