Natural Gas weekly special report based on 1.00 Lot Calculation:
US NATURAL GAS
- Natural Gas is one of the cleanest among the types of fossil fuel, which increases its demand in times when climate changes happen.
- AROUND 40% OF ELECTRICITY IN THE U.S. IS PRODUCED FROM NATURAL GAS: Rising consumption of electricity in the US will be accompanied by rising demand for natural gas.
- AROUND 40% OF US HOUSEHOLDS USES NATURAL GAS FOR HEATING: As cold temperatures strike the US, households could be expected to increase usage due to rising heating demand.
- U.S.A. IS ONE OF THE LARGEST EXPORTERS OF LIQUIFIED NATURAL GAS (LNG) IN THE WORLD. In total, the US exported 88.3 million tons of LNG in 2024, up 4.4% from 2023’s 84.5 million tons.
EUROPE IS EXPECTED TO START ACQUIRING BIG QUANTITIES OF NATURAL GAS
- EUROPEAN NATURAL GAS STORAGE REFILLING SEASON STARTS: MARCH- APRIL
- EUROPEAN NATURAL GAS STORAGE REFILLING SEASON ENDS: NOVEMBER
- MANDATE: EUROPEAN NATURAL GAS STORAGE SHOULD BE AT LEAST 90% FULL BY NOVEMBER
- CURRENT: AT AROUND 38%
- EUROPE IMPORTS BIG QUANTITIES OF LIQUIFIED NATURAL GAS (LNG) FROM THE USA: The USA accounts for 50% of Europe's total LNG imports. In December, Europe imported 10.89 million tons, of which 5.84 million tons came from the USA.
- 82% OF TOTAL U.S. LNG EXPORTS WENT TO EUROPE IN FEBRUARY 2024: In February, the U.S. exported 8.35 million tons of LNG. Of the total exports, 6.82 million tons (82%) went to Europe.
- EUROPE IS PRESSED TO INCREASE IMPORTS FROM THE USA OR TO FACE TARIFFS: US PRESIDENT DONALD TRUMP.
- STATISTICS (2016 - 2024): NATURAL GAS PRICES ROSE 18.72% ON AVERAGE WHEN EUROPEAN REFILLING SEASON STARTED (MARCH - APRIL). HOWEVER, THE PRICE COULD DECLINE.
Data Source: Meta Trader 4 Platform
Please note that past performance does not guarantee future results
- STATISTICS (2016 - 2024): NATURAL GAS PRICES ROSE 47.80% ON AVERAGE DURING THE EUROPEAN REFILLING SEASON (MARCH – NOVEMBER). HOWEVER, THE PRICE COULD DECLINE.
Data Source: Meta Trader 4 Platform
Please note that past performance does not guarantee future results
NATURAL GAS: PRICE ACTION
- NATURAL GAS PRICES HIT $9.972 IN AUGUST, 2022. The price of Natural Gas back then rose due to a developing energy crisis in Europe, which cut off natural gas purchases from Russia to turn to the USA and import more Liquified Natural Gas (LNG) from them. If natural gas prices managed to recover back to $9.972, this would lead to an increase of around 131%. Although prices could decline, as well.
Natural Gas, March 5, 2025
Current Price: 4.3
NATURAL GAS |
Weekly |
Trend direction |
UP |
6.00 |
|
5.50 |
|
5.00 |
|
3.70 |
|
3.60 |
|
3.50 |
Example of calculation based on weekly trend direction for 1.00 Lot1
NATURAL GAS |
||||||
Pivot Points |
||||||
Profit or loss in $ |
17,000 |
12,000 |
7,000 |
-6,000 |
-7,000 |
-8,000 |
Profit or loss in €² |
15,886 |
11,213 |
6,541 |
-5,607 |
-6,541 |
-7,476 |
Profit or loss in £² |
13,261 |
9,360 |
5,460 |
-4,680 |
-5,460 |
-6,240 |
Profit or loss in C$² |
24,484 |
17,283 |
10,082 |
-8,641 |
-10,082 |
-11,522 |
1. 1.00 lot is equivalent of 10,000 units
2. Calculations for exchange rate used as of 13:20 (GMT) 05/03/2025
There is a possibility to use Stop-Loss and Take-Profit.
- You may wish to consider closing your position in profit, even if it is lower than the suggested one.
- Trailing stop technique could protect the profit.