Exports for the liquefied natural gas of USA grow
Exports of liquefied natural gas (LNG) of the United States in 2018 increased by 61%. Will the NATGAS quotations grow?
Last year, the United States ranked 4th in the world in terms of LNG exports. On May 10, 2019, the United States increased import duties on Chinese goods worth $ 200 billion from 10% to 25%. Initially, this increase was planned on January 1, 2019. Thus, it was expected %. For sure China will respond. However, the export of American LNG is unlikely to suffer, since, basically, it falls on European countries. This week, LNG supplies abroad are more than 1.5 times higher than last year’s level. In addition, the reduction in exports to China is already taken into account in current quotes. In January-April 2019, only 2 tankers with American LNG were sent to China, whereas in the same period of 2018 there were 14. Compared to last year, gas production in the United States is now 10.5% more and total demand - so far only by 7%.The difference between the produced and used volumes of gas enters the reserves and increases them. However, natural gas reserves in the United States are 1.651 trillion cubic feet, which is 14.9% less than the 5-year average.
On a daily timeframe, Natgas: D1 пbroke up the downtrend resistance line and adjusted upward. Various technical analysis indicators have formed a signal of uptrend. Further growth of quotations is possible in case of an increase in demand in the USA.
Summary of technical analysis
Position Buy
Buy stop Above 2,67
Stop loss Below 2,44
Exports of liquefied natural gas (LNG) of the United States in 2018 increased by 61%. Will the NATGAS quotations grow?
Last year, the United States ranked 4th in the world in terms of LNG exports. On May 10, 2019, the United States increased import duties on Chinese goods worth $ 200 billion from 10% to 25%. Initially, this increase was planned on January 1, 2019. Thus, it was expected %. For sure China will respond. However, the export of American LNG is unlikely to suffer, since, basically, it falls on European countries. This week, LNG supplies abroad are more than 1.5 times higher than last year’s level. In addition, the reduction in exports to China is already taken into account in current quotes. In January-April 2019, only 2 tankers with American LNG were sent to China, whereas in the same period of 2018 there were 14. Compared to last year, gas production in the United States is now 10.5% more and total demand - so far only by 7%.The difference between the produced and used volumes of gas enters the reserves and increases them. However, natural gas reserves in the United States are 1.651 trillion cubic feet, which is 14.9% less than the 5-year average.
On a daily timeframe, Natgas: D1 пbroke up the downtrend resistance line and adjusted upward. Various technical analysis indicators have formed a signal of uptrend. Further growth of quotations is possible in case of an increase in demand in the USA.
- The Parabolic Indicator shows a signal to increase.
- The Bollinger bands expanded, indicating high volatility. Both lines of Bollinger have a slope up.
- The RSI Indicator is above the 50 mark. There are no divergences.
- The MACD Indicator shows a signal to increase.
Summary of technical analysis
Position Buy
Buy stop Above 2,67
Stop loss Below 2,44