Natural Gas can be dangerous

There is much going on in capital markets.

In energy, while there has been a seeming long consensus in this theme.

In the meantime, we have seen Oil halve from its high and avid readers of my posts would recall my ‘short’ Natural Gas when it was $10.

My Natural Gas price target was published at $5 and as that target neared, it was revised lower towards the $2.50 mark.

It has been hovering around $2.50 now for a while…..but don’t quickly assume that when covering of a short, then equates into a complete reversal towards a ‘buy’.

Today, the price action in Natural Gas seems dangerous to me. This means that you don’t have to be there.

The pending price moves in Natural Gas could ‘rip one’s face off’.

That is meant to sound as violent as it reads.

From it’s current price of $2.50, Natural Gas could equally see $1 or $4.

60% up or 60% down.

Not exactly a compelling ‘bet’.

Also, I’ll have a think how that could affect any prospective equity opportunities that I might be pondering.

Contrarian observations are always automatic and inverse solves.

While, for end-industrial users though, it’s their buyers market.

March 16, 2023

by Rob Zdravevski

rob@karriasset.com.au