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UNITED NATIONS (AP) — A gaping ideological divide cuts through this year's gathering of world leaders at the United Nations. It's not between capitalists and communists, rich and poor, East and West. It's between multilateralists who advocate nations working together and unilateralists who are pushing for national sovereignty.
Natural gas prices continue to move higher on Tuesday after breaking out on Monday. Prices tested resistance near a Fibonacci retracement level. Colder than normal weather is forecast to cover most of the mid-west increasing heating demand ahead of the inventory withdrawal season. Inventories remain below the 5-year average range. There are a few tropical disturbances, one in the Caribbean that has a 60% change of become a tropical depression and one off the coast of Cape Hateras North Carolina which has a 50% chance of becoming a cyclone.Technical Analysis
Oil prices hovered near a four-year high on Tuesday after the oil cartel decided not to increase production over the weekend.
* Dominion made the announcement in part because it flared some gas at the plant as part of the normal process of depressurizing equipment, which temporarily caused a strong, harmless odor usually associated with natural gas that has been odorized to aid in leak detection and repair. * Dominion spent about $4 billion to add the LNG export terminal to an existing LNG import terminal. It was the second of two big LNG export terminal to enter service in the Lower 48 U.S. states after Cheniere Energy Inc's Sabine Pass terminal in Louisiana.
The trade conflicts between the US and China are still in focus for the investors. The EUR/USD has stabilized and is currently trading slightly higher.
Although the market is nearing previous resistance levels that could limit gains, the market is likely to remain underpinned as long as the weather forecast calls for cooler-than-average temperatures over the next two weeks. Cooler temperatures, increased demand and a widening supply deficit should continue to underpin the market and could even launch a rally into levels not seen in close to a year.
Natural gas markets broke above the psychologically significant $3.00 level during the day on Monday, showing signs of real strength. We are starting to head into the colder months in the northeastern part of the United States and the seasonality seems to be working for it.
Based on yesterday’s price action and the close at .7251, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the Fibonacci level at .7257.
At 2.722 trillion cubic feet, current natural gas inventories are 17.7% under the five-year average and 19.8% below the year-ago figure.
Natural gas prices continued to breakout on Monday, after pausing on Friday. Colder than normal weather is expected to cover most of the United States for the next 2-weeks. Inventories remain below the 5-year average range while prices remain below the 5-year average price. There are a few tropical disturbances in the Atlantic, but few are headed toward US natural gas infrastructure and should not generate volatility.Technical Analysis
Between September 14 and 21, the United States Natural Gas ETF (UNG) and the ProShares Ultra Bloomberg Natural Gas ETF (BOIL) rose 8.4% and 16.8%, respectively. These ETFs track natural gas futures. UNG holds active natural gas futures contracts while BOIL’s objective is tracking twice the daily changes of the Bloomberg Natural Gas Subindex.
In the week ending September 21, natural gas prices remained slightly above the $3 per MMBtu (million British thermal units) level. The level has been important for nitrogen (XLB) fertilizer producers like CF Industries (CF), CVR Partners (UAN), and Mosaic (MOS).
Between September 14 and 21, US crude oil November futures rose 2.9% and closed at $70.78 per barrel. In September, US crude oil active futures have risen 1.4% after rising 1.5% in August. The US dollar’s fall, as well as the OPEC–non-OPEC meeting, may have boosted oil prices. Gasoline inventories’ significant fall may have been behind WTI’s outperformance of Brent oil.
Based on the early price action, the direction of the December E-mini NASDAQ-100 Index futures contract is likely to be determined by trader reaction to the long-term uptrending Gann angle at 7505.50.
Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to the long-term uptrending Gann angle at 26698.
Production is likely to remain steady so most of the price action will likely be influenced by the weather forecasts and demand. Most speculators are looking at the 10-14 day forecast. “Recent weather data has been milder/warmer October 4-8 as high pressure returns across much of the country with national demand easing back to light levels.”
There are no major economic reports today, China and Japan are on holiday and the Fed starts its two-day meeting on Tuesday. Look for a low volume, low volatility trading session.
Prices of oil have been rising in recent months over concern of supply tightening due to U.S. sanctions against Tehran, which are expected to go into effect on November 4 and have already caused Iran’s crude exports to fall.
With oil traders forecasting crude oil to rise to $100 a barrel by the end of the year, Indian refiners are considering cutting back their imports and relying more on cheaper crude already stored in inventories, according to industry executives. Benchmark Brent crude oil futures surged 2 percent on Monday to over $80 a barrel as markets have tightened ahead of the start of sanctions by the United States on Iran, with commodity merchants Trafigura and Mercuria predicting $100 oil by the end of 2018. The soaring oil prices are occurring at the same time emerging market currencies, such as India's rupee, are under pressure.
OSLO (Reuters) - The liquefied natural gas (LNG) tanker Ougarta is due to arrive at Britain's Isle of Grain port on Sept. 27, Reuters shipping data showed on Monday. The tanker, which has the capacity ...
LONDON/SINGAPORE, Sept 21 (Reuters) - The price of shipping liquefied natural gas (LNG) has spiked in September and is likely to remain high next year, buoyed by rising production from new plants and concerns that demand for LNG vessels will outpace supply. Rates, which broadly hovered around $30,000 to $40,000 a day from 2015 to 2017, have risen due to longer distances covered to transport LNG from new terminals in the United States and Arctic Russia, surging demand in China and a limited number of ships. Shipping firms see little sign of them slipping soon, predicting high rates for 2019 or longer, during their earnings calls this month.
With the start of fall last week, weather will once again become a key issue driving the price action. NatGasWeather says over the short-run, the current weather pattern was “still notably colder than normal with strong early season demand for heating.”
The trade dispute and the dollar will continue to drive the price action in gold this week. However, this week, the dollar could strengthen and gold could weaken. This is because China called off the trade talks with the United States and said it wouldn’t meet with high level negotiators until after the November mid-term elections. Also contributing to the movement in gold will be the outcome of this week’s two-day Federal Open Market Committee meeting which culminates with the Fed’s interest rate and monetary policy decision on Wednesday, September 26.
The direction of WTI and Brent crude oil this week is likely to be determined by the outcome of the OPEC meeting in Algiers on September 23. At this meeting, OPEC producers and other non-OPEC producers are expected to discuss how to best distribute planned increases to offset the loss of Iranian output, estimated at 1.4 million barrels a day. However, if the reports from late last week are true, this figure may rise as high as 1.9 million barrels.