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NinjaTrader Chart of the Day: What are the Negative effects of paying lower gas prices?


Market: $NG_F, $CL_F

Chart Analysis:

The ever expanding, and controversial shale gas boom in the United States could have a significant impact on oil prices in the coming years. While one cannot complain about lower gas prices, and the alleviation of dependency on foreign oil, environmentalists have raised their concerns surrounding the negative impacts hydraulic fracking could have on the water table and air quality. However, with the recent surplus in natural gas, the U.S. has actually reduced its year over year consumption of oil, emitting less CO2 in the atmosphere as natural gas is a much cleaner (oxymoron) fossil fuel when burned. Today's Chart of the Day, fueled by the free end of day Kinetick data feed showcases the daily Natural Gas ($NG_F) and Light Sweet Crude ($CL_F) futures contracts. A daily spread indicator illustrates the difference in trading prices of the two commodities. Additionally, a daily natural gas Volume Oscillator indicator was added, which measures volume by calculating the difference of a fast and slow moving average of volume, providing traders with insight regarding the strength or weakness of a price trend. A positive value may suggest there is enough market support to continue driving the price activity in the direction of the current trend. A negative value may suggest a lack of support, and stagnant prices or a reversal may be imminent. If the U.S. continues to capitalize on the Marcellus Shale natural gas deposit in the North Eastern United States as well as the countless other deposits nationwide, what long-term implications will this have on oil? Will the U.S. become a net natural gas exporter?