Jump to content

Natural gas rebounds as regulators delay key Nord Stream 2 pipeline


MongiIG

Recommended Posts

Natural gas rebounds as regulators delay key Nord Stream 2 pipeline

Natural gas on the rise as German regulators delay Nord Stream 2 pipeline, with the rebound from support pointing towards a potential period of strength.

bg_gas_hob_870772.JPGSource: Bloomberg
 Joshua Mahony | Senior Market Analyst, London | Publication date: Tuesday 16 November 2021

Natural gas rebounds as Germany regulator suspends Nord Stream 2 certification

Natural gas prices in Europe have turned higher over the past 24-hours, following the German regulator’s decision to “temporarily suspend” certification of the Nord Stream 2 pipeline.

The Swiss-run project is seen by many as key to the supply of gas from Russian giant Gazprom, which has promised to fill European storage tanks in a bid to drive down prices. This pipeline may not necessarily lift natural gas exports immediately, but many see it as a key battleground the Russians will utilise as a means to influence, considering the current pricing crisis.

While Gazprom has promised higher exports, we are yet to see that come to fruition in any meaningful way. As such, Russia will continue to push for the approval of the pipeline under the provision that such a move would result in higher gas exports and lower prices. With that in mind, traders see this latest delay as a sign that gas imports to Europe will remain tight for the time being.

Belarus threaten to cut gas transfers

Another cause for concern has come from Belarus, with the country’s leader warning that he could cut off the Yamal pipeline in retaliation to sanctions placed on the country.

Russian exports from the Yamal gas fields head to Germany, through Poland and Belarus. While they do not feed any other countries, they are key in building up the German gas storage facilities. While this would be unlikely given their close relationship with Russia, it does provide another potential flashpoint that could spark an upward move for gas.

Natural gas technical analysis

This week has seen natural gas prices rebound from the key $4.76, which tallied up with an ascending trendline support dating back to April.

The wider uptrend does remain intact, with this recent pullback bringing a rare move into oversold territory on the stochastic oscillator. The push up out of that zone highlights a return of bullish sentiment, pointing towards a potential rebound from here.

A break back below $4.76 would be required to negate that view.

NG-Daily-2021_11_16-12h13.pngSource: ProRealTime

 

On the 4-hour chart, we can see that price has rebounded into the double bottom neckline of $5.22. A rise through that level would bring about greater confidence for the bulls.

To the upside, there are still hurdles to overcome, yet we look likely to gain traction in the meanwhile if this intraday double bottom completes.

NG-4-hours-2021_11_16-12h16.pngSource: ProRealTime
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,632
    • Total Posts
      91,900
    • Total Members
      41,914
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Sobbosachi_728
    Joined 25/03/23 17:38
  • Posts

    • Charting the Markets: 24 March The FTSE 100, DAX 40 and Nasdaq 100 slide on renewed banking woes while EUR/USD, EUR/GBP and GBP/USD drop as the US dollar, gold appreciate due to flight-to-quality flows. Crude oil and copper tumble on recession fears.  Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 24 March 2023         This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.  
    • Market Breakdown | WTI Oil, EURUSD, GBPNZD, EURAUDHere are the updates & outlook for multiple instruments in my watchlist.1️⃣ WTI Oil daily time frame️The market is trading in a long term bearish trend .After the last sharp bearish movement, the market is steadily recovering.Ahead, I see a major horizontal supply area.Probabilities are high, that the next bearish wave will initiate from there.2️⃣ EURUSD daily time frameAfter a breakout of a solid daily resistance, the market is preparing for its retest.Watch carefully the underlined zone and look for buying opportunities from there.3️⃣ EURAUD weekly time frameThe pair is currently approaching a weekly horizontal resistance cluster.Taking into consideration, that the pair is quite overbought, probabilities will be high to see a pullback from that4️⃣ GBPNZD daily time frameThe pair is currently retesting a broken neckline of an ascending triangle . As we discussed earlier, the trend line of a triangle and its neckline compose a contracting buy zone now.Chances will be high that the next bullish wave will initiate quite soon.For Additional confirmation use: Divergence Indicators
    • #CHFJPY: Classic Bearish Setup 🇨🇭🇯🇵   🔻CHFJPY has nicely respected a confluence zone based on a horizontal 4H resistance and a 0.5 retracement of the last bearish impulse.   The price formed a double top pattern on that and broke its neckline.   Probabilities will be high that the pair will drop lower soon. Goals: 141.172 / 140.363  
×
×
  • Create New...