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US English

Oil prices continue recovery, while gas prices move in narrow range

By Jenal Mehta

11:10, 9 December 2021

A gas pressure meter
US natural gas prices have fallen almost 40% from their recent historic peak – Credit: Shutterstock

US natural gas prices have fallen almost 40% from their historic peak during the first week of October.

The price has fluctuated between $3.50 to $4.50 since the start of December – the upper price limit dictated by muted demand in the US due to mild weather.

The lower limit is the result of below-average inventories, largely due to higher electricity consumption in the summer and increased exports.

According to the US Energy Information Administration (EIA), November inventories ended 3% lower than the five-year average.

The EIA expects this demand to taper off in the next few months, erasing the lower limit, with the average in the new year expected to be around $2.88 per million British Thermal Units.

Natural gas price chart Natural Gas Price – Credit: Koyfin

Brent crude oil and US crude oil traded at around $75 and $72 per barrel respectively. Prices have recovered more than 60% since the significant sell-off after the emergence of the new Covid variant, Omicron.

The effect on public health from the new strain appears to be not so severe, according to most government bodies.

Oil - Brent

75.98 Price
+2.030% 1D Chg, %
Long position overnight fee -0.0174%
Short position overnight fee -0.0045%
Overnight fee time 22:00 (UTC)
Spread 0.045

Silver

23.02 Price
-3.350% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee 0.0122%
Overnight fee time 22:00 (UTC)
Spread 0.020

Oil - Crude

71.41 Price
+2.320% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee -0.0015%
Overnight fee time 22:00 (UTC)
Spread 0.030

Gold

2,004.85 Price
-1.180% 1D Chg, %
Long position overnight fee -0.0198%
Short position overnight fee 0.0116%
Overnight fee time 22:00 (UTC)
Spread 0.50

Further reassurance came from Pfizer, which released a statement on Wednesday stating that studies had shown three doses of its vaccine will protect against the new variant.

The EIA remains cautious about the effects of further lockdowns on demand for oil, particularly jet fuel. However, it expects average consumption to increase by 4% in 2022.

Oil price chart Oil prices have recovered more than 60% since the recent sell-off on the emergence of Omicron – Credit: Koyfin

Performance

Brent crude oil

  • Day range: $75.14 - $76.54
  • 52 week range: $48.09 - $86.70
  • 52 week price change: 55.73%
  • 10-day Exponential Moving Average (EMA): $74.45
  • 14-day Relative Strength Index (RSI): 45.45

US crude oil

  • Day range: $71.84 - $73.34
  • 52 week range: $44.95 - £83.83
  • 52 week price change: 58.96%
  • 10-day Exponential Moving Average (EMA): $71.05
  • 14-day Relative Strength Index (RSI): 45.56

US natural gas

  • Day range: $3.66 - $3.85
  • 52 week range: $2.26 - $6.47
  • 52 week price change: 56.35%
  • 10-day Exponential Moving Average (EMA): $4.12
  • 14-day Relative Strength Index (RSI): 35.57

Read more: Third Pfizer (PFE) vaccine neutralises Omicron, study finds

 

Markets in this article

Oil - Brent
Brent Oil
75.983 USD
1.511 +2.030%
Oil - Crude
Crude Oil
71.410 USD
1.62 +2.320%
Natural Gas
Natural Gas
2.5235 USD
-0.0115 -0.450%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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