CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Tellurian (TELL) chair: natural gas prices will reverse

By Daniel Tyson

18:25, 10 December 2021

Tellurian logo
Tellurian - Photo: Shutterstock

Natural gas producer Tellurian’s co-founder and executive chair says the wild ride the commodity currently is experiencing are the result of positive signals in the price.

Charif Souki told CNBC earlier this week the US has a 100-year reserve of natural gas, so all the industry has to do is drill. On Friday afternoon, natural gas futures for December delivery were up by 2.6% to $3.91 per million British Thermal Unit.

“When the price signals tell you to go, everybody starts drilling,” he said.

The natural gas prices had gone from $1.70 per million British Thermal Units a year and a half ago to upwards of more than $5 last month to a low of about $3.50 this week.

However, he expects natural gas prices to decrease in the future, replaced by increased oil prices. But he did not give a range of decline.

“I expect gas prices to go down a little bit, and gas prices to come up a little bit,” he said.


25.08 Price
+1.710% 1D Chg, %
Long position overnight fee -0.0198%
Short position overnight fee 0.0115%
Overnight fee time 22:00 (UTC)
Spread 0.020

Oil - Brent

81.45 Price
+1.660% 1D Chg, %
Long position overnight fee -0.0067%
Short position overnight fee -0.0152%
Overnight fee time 22:00 (UTC)
Spread 0.045

Oil - Crude

76.55 Price
+1.840% 1D Chg, %
Long position overnight fee -0.0187%
Short position overnight fee -0.0032%
Overnight fee time 22:00 (UTC)
Spread 0.040

Natural Gas

2.79 Price
-5.230% 1D Chg, %
Long position overnight fee 0.0457%
Short position overnight fee -0.0676%
Overnight fee time 22:00 (UTC)
Spread 0.0050


What drove the increase of natural gas was partly Europe’s demand. Europe was purchasing natural gas on the spot market for close to $30 after alternative energy sources failed to produce enough to power in a number of countries, especially hard-hit Britain. The continent started purchasing coal and natural gas to help power its nations.

Souki said England and other countries became “complacent” by “lower for longer” natural gas prices “and nothing could have been further from the truth.”

What is your sentiment on Natural Gas?

Vote to see Traders sentiment!

Emerging economies

Currently the world has about seven billion people in emerging countries, soon to grow to nine billion, he said.

“For them to come to the same standard of living as us in the west, Europe and North America, we need to add 50% to the world's energy supply. It is a very, very hard task.”

Tellurian’s stock was down on Friday afternoon to $3.12 a share, a drop of 4.29%. However, so far in 2021, the Houston-Texas based company’s stock is up 158%.

Read more: US crude oil sees bounce Friday morning

Markets in this article

0.540 USD
0.018 +3.820%
0.540 USD
0.018 +3.820%
0.540 USD
0.018 +3.820%

Related topics

Rate this article

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.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading