New Market Conditions - New Natural Gas Trade Projections

Please note that due to market volatility, some of the key levels may have already been reached and scenarios played out.

Trading positions

Henry Hub Natural Gas (NGN22) Long $7.787-7.984 (yellow band) with stop just below $7.348 (red dotted line) and targets at $8.798 & $9.447 (green dotted lines).
RBOB Gasoline No new position justified from a risk/reward point of view.
WTI Crude Oil No new position justified from a risk/reward point of view.
Brent Crude Oil No new position justified from a risk/reward point of view.

Regarding risk management, it is always best to define your strategy according to your own risk profile. For some guidance on trade management, read one of my articles on that topic.

While Europe could face fuel shortages this summer due to tight oil markets, how to enter a trade in current conditions?

On the NYMEX, natural gas futures have reached record levels around the $10 mark before reverting to around $8-8.50. If the production estimates climb, it does not seem to be enough to slow demand down. Concerning U.S. liquified natural gas (LNG) exports, it appears that a joint task force – formed by the White House and the European Commission – would secretly assist the European Union in securing more US-sourced (shale) gas while displacing Russian natural gas imports.

Meanwhile, Europe could face fuel shortages this summer due to tight oil markets, International Energy Agency (IAE) Director Fatih Birol told German newspaper Spiegel. So, energy demand may support prices by providing them with a rebounding floor.

That is precisely where we would take action in order to get long on our newly defined support zone!