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Natural Gas Prices Edge Higher on Tighter Supply

CFDs, Commodities Trading, Finance, Financial Markets, Industry News, Investing, Personal Finance, Spread Trading, Trading No Responses »

May 182012

Gas prices ended higher on Friday for a fifth day, backed by supportive industry data that showed a tighter supply-demand balance despite some early selling as investors took profits ahead of a mild weekend.

Data from the US Energy Information Administration showed total domestic gas inventories rose last week by 30 billion cubic feet to 2.606 trillion cubic feet.

The build for the commodity fell short of the estimate of 34 bcf and came in well below last year’s and the five-year average.

Weekly inventory builds have fallen below average in four of the last five weeks and are likely to do so again this week even as milder spring temperatures slow overall usage.

According to www.cleanfinancial.com, the inventory build sharply trimmed the surplus to last year by 41 bcf to 799 bcf, or 44%. It also sliced 54 bcf from the excess to the five-year average, reducing the total to 803 bcf, or 45%.

Early injection estimates for this week’s EIA report range from 52 to 79 bcf, well below last year’s adjusted build of 86 bcf and the five-year average increase for that week of 91 bcf.

If weekly stock builds through October match the five-year average, inventories would exceed the government’s 4.1 tcf estimate of total storage capacity by about 375 bcf.

The above is a review of the natural gas market for 7 May 2012 – Friday 11 May 2012.

Contracts for Difference Trading and Financial Spread Trading do involve a high level of risk. Investment formats such as these are margined which means that it is possible to lose more than your original stake.

You should always invest using capital that you can afford to lose; before making any trades make sure that you recognise the risk. Be aware that Contracts for Difference Trading and Spread Trading might not always be suitable for your trading strategy; where you think it is necessary obtain independent trading guidance.

Market review by Pip Trade.

Gold Futures Rise after Weak US Non-Farm Payrolls

CFDs, Commodities Trading, Finance, Financial Markets, Forex, Gold Trading, Industry News, Investing, Personal Finance, Spread Trading, Trading No Responses »

May 122012

A sell-off in commodities got little reprieve on Friday, with oil prices plunging 4% to close below $100 a barrel for the first time since February.

Disappointing US jobs data was the main catalyst sparking a broad flight from risk.

The dollar remained strong for a fifth straight day, making it costlier for buyers using the euro and other currencies to purchase gasoline, copper and other dollar-denominated commodities.

The Labour Department reported that US employers cut back on hiring in April, although the jobless rate itself fell slightly as more people gave up looking for work.

Looking at the Spreadex prices, gold was one of the few markets that rose as some investors viewed the precious metal as a bet against further deterioration in the US economy.

The declining economy creates the opportunity for fresh stimulus measures and weaken the dollar, driving investors into gold.

Gold futures rose on Friday as investors selling crude oil and equities bought the metal after the weak US nonfarm payroll report boosted bullion’s investment appeal.

Bullion still finished down 0.6% for the week.

Gold has dropped $150 from a peak in late February after a strong run of US data cast serious doubts over whether the Federal Reserve would launch a third round of government bond purchases, or quantitative easing.

The above is a review of the commodities market for 30 Apr 12 to 4 May 12.

Market review by Pip Trade.

Commodities Spread Trading: Gas Slides amid High Supply and Low Demand

Commodities Trading, Finance, Financial Markets, Investing, Personal Finance, Spread Trading, Trading No Responses »

Apr 062012

Gas slid to a 10-year low in recent energies trading activity, as light demand and record high supplies pressured prices in the biggest quarterly decline in two years. Looking at the CFDs energies prices, Gas was down nearly 7% in a recent report.

US Energy Information Administration production data offered little hope for the commodities spread trading investors who were buying the market, with January gross gas output climbing to a record of 72.85 billion cubic feet per day, eclipsing the previous peak of 72.68 bcf in November.

EIA data showed total gas inventories rose in recent trading activity by 57 bcf to 2.437 trillion cubic feet.

The build, the second in 2012 and the largest ever for March, drove stocks further into record territory for this time of year and sharply widened the already huge surpluses to year-ago and the five-year average.

Builds this year have started about earlier than usual, and storage is set to finish the month near 2.5 tcf, about 60% above normal and easily above the previous March 31 record of 2.148 tcf from 1983.

Early injection estimates for this week’s EIA report range from 8 bcf to 49 bcf versus last year’s adjusted draw of 29 bcf and the five-year average build for that week of 8 bcf.

The inventory surplus will provide a hefty cushion to meet any spikes in demand or storm-related disruptions in supply this year. It is expected to grow further in coming weeks, at least until stronger air conditioning demand slows builds.

Market review by Spreadex.

Commodities Trading: Increased Inventories See Gas Prices Slide

Commodities Trading, Finance, Investing, Personal Finance, Spread Trading, Trading No Responses »

Mar 312012

Looking at the Financial Spreads charts we can see that gas prices slid nearly 4% in recent commodities trading activity after the US Energy Information Administration data showed total gas inventories rose last week by 11 billion cubic feet to 2.380 trillion cubic feet.

The increase was slightly above market expectations and came about two weeks earlier than usual. It was the first time in five years that storage registered a gain for that week.

Despite declines in gas drilling, output cuts by producers and unexpected nuclear plant outages, a near-record mild winter slowed overall usage and built up a huge inventory surplus that could hamper any price gains this year.

A mild winter helped drive the inventory surplus to last year up to 766 bcf, or 47%, while the excess to the five-year average grew to 835 bcf, or 54%, a huge cushion to meet any spikes in demand or storm-related disruptions in supply this year.

Futures brokers believe that storage is likely to finish the month at an all-time high of about 2.45 tcf, more than 55% above normal and easily beating the previous March 31 record of 2.148 tcf set in 1983.

Early injection estimates for this week’s EIA report range from 43 bcf to 58 bcf versus last year’s adjusted build of 7 bcf and the five-year average decline for that week of 8 bcf.

FinancialSpreads Launch a New CFD Trading Service

CFDs, Commodities Trading, Crude Oil Trading, Finance, Financial Markets, Forex, Gold Trading, Industry News, Investing, Personal Finance, Spread Trading, Stock Market, Trading No Responses »

Mar 202012

Financial Spreads, the UK spread trading company, has launched a low cost Contracts for Difference (CFD) service.

Financial Spreads is now offering CFDs on all its markets which means that clients can speculate on over 2,500 CFD markets including UK and US shares, forex, stock market indices, commodities, bonds and interest rates.

Unlike many CFD brokers, Financial Spreads is offering a commission-free service. Instead of a commission, a small spread is applied to the underlying market; for example, on FTSE 100 shares the spread is as low as 0.1%.

Benefits of using the new CFD trading service include:

• No commissions
• No brokers’ fees
• Low minimum margin rates
• Professional level trading charts for every market
• 24 hour trading trading on a range of popular markets^
• No stamp duty^^

The ability to trade CFDs and spread bets from the same account

Adam Jepsen, spokesman for FinancialSpreads.com, commented, “As with our financial spread trading service we are committed to low cost trading.

“With CFD trading the primary costs are normally the ‘commission’ and the ‘spread’, i.e. the difference between the sell and buy price. Therefore it typically costs more to trade with companies that have high commission levels and wide spreads.

“If an investor trades CFDs with FinancialSpreads.com there are no commissions. We also offer some of the tightest spreads in the market. E.g. the spread applied to FTSE 100 shares is 0.1%, i.e. just 0.05% per side of the underlying share.”

While the firm offers clients an array of risk management tools such as Stop Loss orders, Guaranteed Stop Loss orders, Limit orders and Trailing Stops, investors should be aware that both CFD trading and spread trading are leveraged and therefore carry a high level of risk.

“With both CFDs and spread trading, investors can lose more than their initial deposit so you should ensure these forms of trading meet your investment objectives. Always seek independent financial advice if you do not understand the risks,” added Jepsen.

About Financial Spreads

Financial Spreads offers both CFDs and spread trading on more than 2,500 markets including shares, stock market indices, commodities, forex and treasuries. The service is commission-free and there are no brokers’ fees.

Clients can trade CFDs and financial spread trading markets via FinancialSpreads.com and over the phone. Both CFDs and spread betting give investors the option to speculate on markets to go up or down.

Financial Spreads is a trading name of London Capital Group (LCG) which is authorised and regulated by the Financial Services Authority. Registered address, 2nd Floor, 6 Devonshire Square, London, EC2M 2AB.

The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced.

^ From Sunday evening to Friday evening, see FinancialSpreads.com for details.
^ ^ Tax treatment depends on individual circumstances and may change in the future.

German Economic Data Boosts European Shares Spread Trading Markets

Commodities Trading, Crude Oil Trading, Finance, Financial Markets, Investing, Personal Finance, Spread Trading, Stock Market, Trading No Responses »

Mar 142012

European and US equity indices performed well yesterday, helped by the apparent absence of negative news flows and strong German economic data.

The shares spread trading market this week could be said to look healthier than it did two weeks earlier at a similar price for one good reason.

At the beginning of last week the sellers tested those looking to buy into the current market, and the negative price action created as a result of that selling quickly recovered, within a week in fact.

Given that one of the most significant concerns of participants of late has been the virtually uncorrected positive run equities have had since late last year, the cash that investors believed would be taken from the table has to some extent happened.

This, then, potentially bodes well for anyone long of stocks at the moment, with profit-taking so far comfortably absorbed.

On the main market in London yesterday, spread trading investors turned to the continuing volatility seen from Gulf Keystone (GKP), an oil and gas explorer operating in the northern Iraq region of Kurdistan listed through AIM.

The stock, subject to various on-going rumours, traded higher at 10% after falling some 16% on Monday in spite of a positive operational update.

Various broker comments pointing to the political risks surrounding the company’s licences and a rumour that Exxon Mobil (XOM) could abstain from bidding for the company or its assets dragged the stock’s price much lower from its recent intra-day high of 465p.

Given the recent eye-watering volatility, leverage ought to be used only with extreme caution.

Market review by Spreadex.

Lower Grain Prices Drag Commodities Markets Down

CFDs, Commodities Trading, Credit Markets, Finance, Gold Trading, Investing, Personal Finance, Spread Trading, Trading No Responses »

Dec 182011

Copper prices rallied on speculation that China was preparing a new investment vehicle that might help Europe. However, strong losses in agricultural prices pushed the wider commodities complex to close lower.

Speculators are expected to pay attention to American numbers such as consumer prices, retail sales, jobless claims and manufacturing to gauge direction.

Energy & metals markets increased on news that the Chinese central bank aims to create a $300bn vehicle to manage investment funds in the US & Europe.

Some commodities markets were also lifted by the EU’s pledge following a two day summit to pursue stronger integration & stricter budget discipline in the euro-zone, despite the fact that Britain opted out of such collaboration.

Looking at the agricultural front, soybean dropped 2.3 per cent to a 14 month low, wheat tumbled to a five month low & corn fell more than 1% following a government forecast which topped estimates for supplies of the key American grains.

Cocoa finished lower by 7.2 per cent, decreasing for a sixth straight week & marking its largest weekly decrease in three months. The cocoa trading market has given up more than 22 per cent since early November, plunging to 3 year lows & reaching particularly technically oversold levels. The commodity has been pressured by oversupply & bearish macro sentiment.

Gold, which you can speculate on with a City Index spreads or a Spreadex Account, pared losses as it was pushed higher in a shares rally as European Union leaders agreed to push for deeper economic integration & as American consumer sentiment reached a six month high.

The yellow metal, however, closed lower hurt by technical selling as spread traders remained doubtful that the EU would resolve the crippling sovereign debt crisis in the long-term. Gold bullion recorded a decrease of 2%. It dropped after the ECB poured cold water on hopes of more dramatic action to fight the European debt crisis.

Market review by Pip Trade.

Commodities Trading: Gas Plunges as Record Production Keeps Market Oversupplied

CFDs, Commodities Trading, Credit Markets, Finance, Investing, Personal Finance, Spread Trading, Trading No Responses »

Dec 172011

Natural gas prices ended down dramatically in recent commodities trading action with worries building about moderate weather estimates & bloated supplies. Note that you can take positions on natural gas via a Capital Spreads account and/or a CMC Markets account.

American EIA numbers revealed total natural gas stocks dropped by 20 bn cubic feet to 3.831 tn cubic feet. Spread traders & financial analysts had expected a 12 bcf draw.

Whilst the Energy Information Administration storage figures were bullish against estimates, spread traders noted the pull was well short of the year ago & the five year average decrease.

The draw dramatically widened the surplus in inventories relative to last year by 61 billion cubic feet to 102 billion cubic feet, or 2.7 %. It also added 46 billion cubic feet to the excess to the five year average, increasing the total to 307 billion cubic feet, or 8.7 per cent.

Spread traders also remarked that storage, which reached an all time high of 3.852 tcf in recent market activity, remains at a record high for this time of the year. This is the third consecutive year that stocks head into winter sitting at a record high.

With no severe cold on the horizon to spur demand, most spread traders see only limited up side, expecting record production & high stocks to keep the market oversupplied.

Market review by Pip Trade.

Crude Oil Trading Market Rebounds on News of EU Fiscal Accord

CFDs, Commodities Trading, Credit Markets, Crude Oil Trading, Finance, Investing, Personal Finance, Spread Trading, Trading No Responses »

Dec 142011

Crude oil prices recovered some of their losses following a choppy start, on news of an accord for a closer Euro-zone fiscal union & news about a Chinese fund for American & European investment.

Overall, oil recorded a 1.5 per cent loss recently, & sources said scepticism over the latest EU agreement to tackle the debt crisis limited any move higher in crude oil prices.

Light volume trading helped keep crude oil trading erratic, & the commodity didn’t get much of a lift from numbers showing American consumer sentiment increased at the start of December to its highest point in six months.

Persistent tensions between Iran & the West along with tensions remaining in parts of the Gulf, Syria & Egypt continued to support crude oil prices. Note that you can check live crude oil charts with ETX Trading and GFT Markets.

The risk of a disruption of supply from Iran has increased with EU leaders debating more sanctions against Tehran in an attempt to put pressure on the country over its nuclear program although the European Union did not make any calls for an embargo on crude oil.

US crude oil & product stocks increased in recent trading as crude imports rose, US EIA figures revealed.

Crude stocks in the US increased by 1.34m barrels to 336.08m barrels according to the Energy Information Administration. Market analysts had projected an average 600,000 barrel draw-down.

Distillates, which include diesel & heating oil, increased by 2.53m barrels to 141.02m barrels, in comparison to average estimates for a 1.2 million-barrel climb.

Gasoline stocks increased by 5.15m barrels to 214.99m barrels, in comparison to a 700,000 barrel build anticipated by market analysts.

OPEC crude oil producers, in disagreement over production policy since June, appear set to agree a new production goal that legitimises current cartel production around 30m bpd at a mid December meeting.

OPEC’s foremost price hawk, Iran, appears to have abandoned its campaign to have Gulf Arab countries including leading producer Saudi Arabia scale back supply.

The Organisation of the Petroleum Exporting Countries sees average demand in 2012 for OPEC crude at 30m barrels a day compared to 29.8m barrels per day from the United States EIA & 30.4m barrels a day from the Paris based International Energy Agency.

Market review by Pip Trade.

Tighter Credit Conditions Send Commodities Spread Trading Markets Lower

CFDs, Commodities Trading, Credit Markets, Crude Oil Trading, Finance, Financial Markets, Gold Trading, Investing, Personal Finance, Spread Trading, Trading No Responses »

Dec 032011

Commodities were primarily down recently with most sectors posting drops as a stronger dollar, a rise in borrowing costs for Italy and tighter credit in the commodities sector eroded investor confidence. Gold bullion & crude oil pared losses with oil lifted by concerns about Middle-East tension.

Whilst trading was thin due to the USA’s Thanksgiving holiday, traders will be watching figures for signs of economic recovery in the US, the world’s biggest crude oil user, & any ratings cut for Euro zone countries. American new home sales for October & monthly house prices for September are still to be released.

The US dollar increased to a seven week high against the single currency, & was also robust against a basket of currencies, putting downwards pressure on most commodities including the crude oil market. Crude oil, along with other dollar denominated commodities, has a tendency to be negatively correlated with the US dollar as it becomes more costly for those holding other currencies.

In the agricultural markets, American grains dropped on concerns about the weakening world-wide economy & the more robust US dollar, in a post-holiday shortened trading session. In the softs markets, cocoa hit a new 2-1/2 year low, sugar fell to the lowest mark in over 5-1/2 months & coffee also suffered losses. Investors can speculate on a variety of commodities with Spreadex and through a Capital Spreads account.

Bullion dropped in recent trading, pressured by declines in stock markets, technical selling & gains in the US dollar. Despite the fact that bullion has followed riskier asset classes of late, physical gold bullion held by worldwide exchange traded funds increased to record highs, indicating some safe haven buying by jittery traders.

IMF figures showing that central banks bought almost 26 tonnes of bullion in October, boosted by an almost 20 tonne purchase by Russia and buying from Belarus, Mexico & Colombia underpinned this investor buying sentiment.

Market review by Pip Trade.

Older Entries

Natural Gas Prices Edge Higher on Tighter Supply

Gold Futures Rise after Weak US Non-Farm Payrolls

Commodities Spread Trading: Gas Slides amid High Supply and Low Demand

Commodities Trading: Increased Inventories See Gas Prices Slide

FinancialSpreads Launch a New CFD Trading Service

German Economic Data Boosts European Shares Spread Trading Markets

Lower Grain Prices Drag Commodities Markets Down

Commodities Trading: Gas Plunges as Record Production Keeps Market Oversupplied

Crude Oil Trading Market Rebounds on News of EU Fiscal Accord

Tighter Credit Conditions Send Commodities Spread Trading Markets Lower

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