Natural Gas Plunge

[shtferbrains]

Yara share price is going the wrong way. Time to make some cash.

Behind all of the noise you have to remember the top exec of all these companies including big pharma get bonuses based on how they drive share prices. They will push profits for the next cheque. What the long term consequences are doesn't seem a big deal as most don't stay long.

[errolanderson]

AECO storage hub nat gas price moving up on these cold temps.

Suffield spot bottomed @ $3.35 per gigajoule two weeks ago. Now the spot gas appears ranging $4 to $4.10 per gig.

New York gas futures still struggling with the Feb contract hovering around $3.70/MMBTU. Nat gas futures have collapsed 30 to 35 percent over the past month. Surprised futures remain so doggy considering time of year.

Seasonally, there should be a January gas price recovery . . . .

[Hamloc]

I was just reading on Farm Futures this morning that Yara is starting all of it’s European Ammonia plants due to the fact that the price of Ammonia on world markets has risen high enough to make it profitable again. Out of interest I took a look at the natural gas price in the U.K. this morning. It is at 320 pence a British therm, up from 228 pence just 9 days ago. That is a 40% increase and equivalent to $240 for a barrel of oil.

This morning U.K. natural gas price is trading at 455 pence per therm, almost doubled now since early December. From what I read this morning in countries in the EU like Germany electricity is hitting record prices as well.

It looks to me like Putin is playing with the European leaders like puppets on a string. Their poor choices in energy infrastructure have put him in the drivers seat.

[shtferbrains]

14 times current USA price for natural gas.

Wonder if those proposed LNG plants on northern BC coast look to have better economics now?

Diesel plants are a low cost producer. Set up your own gen set.

Have to wonder what we will see play out in the food vs fuel situation.

Reset for sure. Not very well planned.

[farming101]

This sell-off may be an opportunity for hedgers to purchase Feb/Mar nat gas calls. Feb at-the-money $3.65 calls trading for 0.39 today or $3,900 U.S. per contract for massive ten million BTU gas contract.

That was a good call Errol
Feb 3.65 calls up 59.2% less fees as of yesterday. Should be up some more today.
14 days to expiry .8457 delta

[farming101]

That was a good call Errol
Feb 3.65 calls up 59.2% less fees as of yesterday. Should be up some more today.
14 days to expiry .8457 delta

Now up 141.5%

[helmsdale]

Now up 141.5%

Yea, there's going to be a few shorts holding their asses after today...

[farming101]

3.65 Feb calls settled up 210.5% since Dec 6