Natural gas price is a delight for eyes

There is a new era when oil value is higher than gas has. While oil worth keeps lifting, natural gas is gaining momentum in falling.
Image result for Natural Gas
In the second quarter, the exchange prices for natural gas finally broke away from oil prices. While oil prices are on average at a comfortable level of $ 65 per barrel, in Europe the cost of gas on the exchange is at ten years minimum - $ 110 per thousand cubic meters, the value of LNG in Asia is $ 170 per thousand cubic meters.
Why did this situation come up?
There are at least several roots. The first one, exchange figures, reflect only a part of the international gas trade and LNG. And the same Qatari, Australian LNG is supplied to Asian markets mainly with oil rate.
June 20 futures set at 2.185 dollars per million British thermal units, which is on the most decreasing spot for the contract for the first month since 2016. This marked a breakthrough in the range from about 2.30 to 3.60 dollars from January. Thursday futures amounted at $ 2,287.
Accordingly, the demand for gas on the commodity market is not so high relative to the entire world trade, therefore even a small excess of supply leads to the price downfall. And this offer has grown as a result of the expected surplus in the market of liquefied gas: new liquefaction plants are being launched.
To predict future fate of the gas value is quite hard. On the one hand, the demand for gas will go on growing much faster than for oil. As a result, oil prices are about to be much more predictable in the medium and long term, in contrast to hopeful gas rate.
If you research GMO Trading site, you have a chance to find out more appropriate information, regarding this matter.
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