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Nigeria's President Muhammadu Buhari met with Shell on Wednesday as part of talks that could lead to a $15 billion investment in his country. Nigerian President Muhammadu Buhari met with Shell RDSA-GB on Wednesday as part of talks he said were to secure $15 billion of investment in his country.
Between April 10 and April 17, 2018, the correlation between natural gas and US crude oil May futures was just 4.2%. In the seven calendar days to April 17, US crude oil and natural gas prices moved in the same direction in three instances out of the last five trading sessions based on the closing prices.
Natural gas inventories declined by 19 Bcf (billion cubic feet) to 1,335 Bcf in the week ending April 6, 2018, according to the EIA’s (U.S. Energy Information Administration) report announced on April 12, 2018. The fall in the EIA’s data was eight Bcf more than the market’s expected fall. On April 12, 2018, natural gas May futures rose 0.4%.
The gold prices broke out above the $1350 level during the Wednesday’s session but later in the day pulled back slightly to find support underneath around the level. Given enough time this market will continue to move higher with initial resistance at the $1360 level. Pullbacks will offer a good opportunity to enter this market with important supports at $1340 level and $1325 level. …Read MoreSilver
Today’s EIA report is likely to drive the price action immediately after its release, but the latest weather forecasts may take control later in the session since the report is considered “old news”.
Prices are currently pressing late 2014-highs, supported by a decline in U.S. crude inventories and a drive by Saudi Arabia to push prices into the $80 to $100 per barrel area by continuing to withhold supplies.
The German index did very little during the session on Wednesday, as we continue to hang about the €12,500 level, but we are below there, and that should continue to offer support. I believe that the market will look at that level as support, but I am a bit surprised that the DAX did nothing, when other stock markets around the world removing.
Natural gas markets rallied significantly during the trading session on Wednesday, reaching as high as the $2.78 level. However, we ran into a bit of resistance, and we are getting close to the major resistance barrier in the form of the $2.80 level.
The British pound fell against the Japanese yen in early Wednesday trading, dropping down to the 152.00 region. We did bounce from there quite significantly though, and although this has been a very negative turn of events, I think looking around the Forex world, the British pound is trying to make a stand.
The Australian dollar initially dipped a little bit lower during the day on Wednesday, but then broke down towards the 0.70 level. This is an area that of course is going to be a psychologically important due to the round number, but I think that it’s likely we will continue to see a lot of volatility.
Based on the early trade, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the 50% level at .7779.
On April 17, 2018, natural gas May 2018 futures closed at a premium of ~$0.1 to May 2019 futures. The difference is called the “futures spread.” On April 10, 2018, the futures spread was at a premium of ~$0.03. Between April 10 and April 17, 2018, natural gas May futures rose 3.1%.
On April 17, 2018, natural gas May 2018 futures fell 0.5% and settled at $2.738 per MMBtu (million British thermal units). However, between April 10 and April 17, 2018, natural gas May futures rose 3.1%. Unseasonal cold weather could be behind natural gas’s rise over this time period.
Natural gas prices whipsawed attempting to pressure higher but failing and reversing and closing near the session lows. The EIA revealed that working gas storage continues to post net withdrawals during first week of the refill season. Net withdrawals from storage totaled 19 Bcf for the week ending April 6, compared with the five-year average net injection of 9 Bcf and last year’s net injections of 9 Bcf during the same week.
Natural gas prices, which are key to US nitrogen fertilizer producers (MOO), were broadly lower during the week of April 4 to April 11, 2018, as reported by the EIA (U.S. Energy Information Administration).
Crude oil prices broke on Wednesday following a report from the Department of Energy that showed a larger than expected draw in total petroleum inventories. Crude oil prices surged higher breaking out to fresh 3-year highs and poised to test target resistance near the 50% Fibonacci retracement of the decline from 2013 to 2016 which comes in near 69.25. The Energy Information Administration reported that U.S. crude oil refinery inputs averaged over 16.9 million barrels per day during the week ending April 13, 2018, 70,000 barrels per day less than the previous week’s average.
Based on the early price action, the direction of the Dow into the close is likely to be determined by trader reaction to the Fibonacci level at 24684.
Based on the early price action, the direction of the index into the close is likely to be determined by trader reaction to the major 50% level at 2707.75.
Traders are expecting a rare April storage draw in this week’s EIA report. The data is expected to show a 23 billion cubic feet drawdown. This is unusual event is being caused by a winter that won’t go away in several key demand areas in the U.S.
The long-delayed Browse gas project off Western Australia has gained key support, with partners in the North West Shelf liquefied natural gas (LNG) plant aiming to agree on a tariff by end-June to handle Browse gas, Woodside Petroleum's chief executive said on Wednesday. Browse is seen as a key source of growth for Woodside but has been stuck on the drawing board for years as plans for onshore and floating LNG development estimated at $30 billion to $45 billion were scrapped. The plan now is to develop the giant gas field to feed the North West Shelf plant, Australia's biggest LNG plant, when its current gas source runs dry in the 2020s.
Natural gas markets fell significantly during the trading session on Tuesday, reaching down towards the $2.71 level. We bounce from there, showing signs of life again, but ultimately, I think there are bigger things at work here.
Based on the early price action, the direction of the gold market into the close will be determined by trader reaction to the main Fibonacci level at $1350.20 and the minor Fibonacci level at $1340.50.
Investing.com - Natural gas futures drifted lower on Tuesday, one day after hitting a more than four-week high thanks to lingering winter-like weather conditions.