Submitted by Desperate-Tennis3891 t3_10q9ejb in wallstreetbets
Natural gas prices are at an all time low of the past 2 years and has historically almost always stayed above where we are now. Is this basically free money if buying and holding or is there some shit im missing?
Natural ass.
🍑🍑
6000ft^3 of Natural or one BBL? Your choice.
Remember 2020 as oil went negative
That was 2020.
Time flies
Just a few decades ago, the dinosaurs started decomposing and began turning into oil. It will be 2024 before ya know it.
The price of a barrel of West Texas Intermediate (WTI), the benchmark for US oil, fell as low as minus $37.63 a barrel.
>There is definitely some risk involved in buying natural gas at these low prices, but if you believe that the market will eventually rebound then it could be a smart investment. However, you need to be aware of the potential downside before making any decisions.
If the rat doesnt see its own shadow tomorrow, im playing natural gas long becauae its year 3 of a la niña pattern and if we expect spring where a brutual continuation of winter is FAR more likely, natural gas will be overused vs projections for heating and this will make companies report better than expected returns, driving stock price. Its not smart, its gambling on a groundhog and the weather. Its the most WSB thing i could think of
And if that happens I will do the exact opposite with agriculture companies. Bayer has been a godsend for shorts in these strange economic times, and they still have 60bn left to lose. Tyson chicken is another one, their scion is a fuckadoo and the chicken is not a winter bird.
but this winter has felt more like spring anyway ... so ... brutal continuation of spring ?
It is -2° outside of my door friend, if this is spring, stocks are simply not an issue anymore
lol - here in the midwest we've had about 10 days below freezing
Henry Hub Natural Gas Spot Price (Dollars per Million Btu) (eia.gov)
Huh? Where? The current price is above all years (outside of COVID years) going back to a few weeks in 2014.
Are you talking about UNG? (Which isn't natural gas price). Are you talking about LNG prices? Are you talking about Natural Gas Prices outside the US?
OP demonstrates his confusion in his post, by equating "all time lows" with the last two years.
2 year low* my bad
25yrs is a bit excessive but gets the point across lmao
What's the source?
Henry Hub is generally considered to be the national pricing for the US.
This is futures. (your OP says "prices" futures are not the price)
What ticker/trade are you planning on using for said "free money"
With most they only tend to work on a volatility trade and not over the long run. On natural gas, I'd rather own businesses that stand to profit from increasing production and pricing differentials.
I trade CFDs not options like most of you, havent grown the balls to do that yet. The ticker is just Natural gas-22feb23.
that's the monthly forward contract
I don't do options. I tried a few times in 2021. Was not good.
I generally try to take positions. In this case, if I was looking for something direct on gas, it might be UNG ticker. Or if I want to get cute, a leveraged ticker like BOIL. (But they only work for trades really, not investments)
Companies I might consider for Natural Gas, Cheniere (LNG), Chesapeake (CHK), Energy Transfer (ET), Williams (WMB). One speculative I keep an eye on is Tellurian (TELL).
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The low price is only for this months and next months contracts. Like June is already over $3. So if you want to buy and hold it, it will cost you money for rolling your positions.
​
There is normally seasonality too for the QG contracts.
I am selling csp on UNG to build a position.
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I'm up around 300% on HND and it's been slowing its climb. I think it'll eventually rebound this year or next once the supply regulates
My opinion is to buy and hold natural gas for a temporary period. The world is trying to move reusable energy eventually but we are in the middle or at the starting point of the movement. Until the reusable energy can completely replace all the energy that we use currently, natural gas need is essential I think. Also when Ukraine and Russia war ends, then economics will rise. At the time, natural gas needs will be higher I think.
Think I’ll fill my propane tanks.
B3stAuD1t0rofA11tiME t1_j6onvgv wrote
So then why was my bill $500 last month. Are they fucking me again?