Natural Gas Could Soon Fall Below $2 | OilPrice.com

Natural Gas Could Soon Fall Below $2 | OilPrice.com:

Natural gas looks doomed again. Poor old natty has spent the entire week declining from an already low level, and two things that happened during that drop suggest that it is far from over. At this point, a break of the psychologically important $2 level looks imminent and if that happens it will probably trigger even more selling as the last of the stubborn longs rush for the exit.

The first of those things happened on Tuesday when the long-term chart for natural gas futures (NG) exhibited a well-known, ominous-sounding pattern…a death cross.

It can be seen on the chart above, when the solid yellow line, which represents the 50-day moving average, crosses the blue line, representing the 100-day average. That is generally considered by traders and analysts to be a very bearish indicator.


The problem with anything like this that relies on momentum is that to some extent, when the signal appears it is really just a confirmation of something that has already occurred. Natty has been falling since it hit a peak of around 2.90 in early November, so a bearish signal can’t really be seen as new. However, the price action that followed the last, similar signal suggests that it shouldn't be ignored.

Oil Falls for Second Week as Ample Supply Offsets Trade Hopes - Bloomberg

Oil Falls for Second Week as Ample Supply Offsets Trade Hopes - Bloomberg:

Oil declined for the second week as signs that supplies remain plentiful offset optimism over the signing of the U.S.-China trade agreement.

Futures in New York were little changed Friday but ended the week 0.9% lower. Refiners have turned a crude surplus into a product surplus with U.S. gasoline and distillate stocks expanding by over 40 million barrels last week. The build overshadowed Beijing’s commitment to spending $52.4 billion in additional purchases of American energy in the next two years as part the phase-one trade deal between the world’s biggest economies.

“There is a positive vibe after the trade deal, but the fact is we are so oversupplied it’s going to be difficult to get the market up past $60,” said Bob Yawger, futures director at Mizuho Securities USA LLC in New York.

Oil steadies as Chinese economy offsets trade optimism - Reuters

Oil steadies as Chinese economy offsets trade optimism - Reuters:

Oil prices steadied on Friday as sluggish economic growth in China, the world’s biggest crude importer, raised concerns over fuel demand and countered optimism from the signing of a China-U.S. trade deal.

Brent crude LCOc1 futures rose 23 cents to settle at $64.85 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 2 cents to settle at $58.54 a barrel.

For the week, Brent fell 0.2%, while WTI lost 0.8%

China’s economy, the world’s second-largest, grew by 6.1% in 2019, its slowest expansion in 29 years, government data showed on Friday.

U.S. oil and gas boom tamed by sharply lower prices: Kemp - Reuters

U.S. oil and gas boom tamed by sharply lower prices: Kemp - Reuters:

U.S. oil and gas production growth is slowing, as lower prices force shale firms to reduce new well drilling and completion rates, and the slowdown is set to intensify this year.

Low prices and the need to conserve cash, rather than a sudden conversion to the merits of investment discipline, have brought the drilling and production boom of 2017/18 to a halt.

U.S. crude oil output was up almost 9% in the three months between August and October compared with the same period in 2018, according to data from the U.S. Energy Information Administration.

But the annual growth rate had already slowed from a peak of more than 21% in August-October 2018 compared with the same period in 2017 (“Petroleum supply monthly,”, EIA, Dec. 31).

Ex-FBI's Louis Freeh Hired by NMC Health to Probe Muddy Waters - Bloomberg

Ex-FBI's Louis Freeh Hired by NMC Health to Probe Muddy Waters - Bloomberg:

NMC Health Plc hired former FBI Director Louis Freeh to investigate allegations by short seller Muddy Waters Capital LLC of financial wrongdoing by the hospital operator.

The appointment is part of NMC’s effort to restore investor confidence. The company’s shares have plunged 44% since Muddy Waters said in a Dec. 17 report that NMC’s financial statements hint at potential overpayment for assets, inflated cash balances and understated debt. The stock rose as much as 7.8% Friday in London.

NMC, which previously called the allegations “unfounded, baseless and misleading,” last month appointed a committee of independent board members to look into the matter. The panel is focusing its review initially on confirmation of the company’s cash balances as of Dec. 15, the United Arab Emirates-based company said in a statement Friday.

“The committee chose Freeh Group to provide a completely independent, unbiased, comprehensive and transparent report that will address all of these allegations,” said Jonathan Bomford, chairman of the committee.

NMC says committee appoints former FBI director to probe Muddy Waters claims - Reuters

NMC says committee appoints former FBI director to probe Muddy Waters claims - Reuters:

NMC Health Plc said an independent review committee had appointed former Federal Bureau of Investigation director Louis Freeh to compile a report on allegations by U.S. firm Muddy Waters and third parties.

NMC, United Arab Emirates’ largest private healthcare provider, launched an independent review of its finances after short-seller Muddy Waters questioned the value of its assets and cash balance while announcing a short position.

Oil steady as sluggish China growth offsets trade deal optimism - Reuters

Oil steady as sluggish China growth offsets trade deal optimism - Reuters:

Oil prices were steady on Friday as reports of sluggish economic growth in China, the world’s biggest crude importer, raised concerns about fuel demand which countered optimism from the signing of a Sino-U.S. trade deal this week.

The world’s second-largest economy grew by 6.1% in 2019, its slowest expansion in 29 years, government data showed on Friday.

“A well-expected fourth-quarter China GDP rate (6%) provided little clue for oil price trading on Friday morning, and mounting downward economic pressure will perhaps limit oil’s upside in the mid- to long-term,” said Margaret Yang, market analyst at CMC Markets.

Brent crude futures LCOc1 were up 12 cents to $64.74 by 0735 GMT, after gaining nearly 1% on Thursday.

U.S. West Texas Intermediate futures CLc1 were up 11 cents at $58.63 a barrel, having risen more than 1% in the previous session.