NG Looks Ready To Shake Hands With WTI
Satendra Singh | Dec 13, 2018 04:37AM ET
On analysis of the comparative moves of Natural Gas and WTI Crude Oil futures, at a single platform, NG looks ready to shake hands with WTI Crude; while China and the United States are in close contact over trade. On Thursday, a commerce ministry spokesman said that any U.S. trade delegation would be welcome to visit.
As this step from both countries will not only create positive atmosphere for both of them, but will also enhance the big consumers of crude and natural gas to come forward during the upcoming week. Let’s have a look at the comparative movements of Natural Gas and WTI Crude Oil futures in a single chart, which clearly reflect the beginning of eruptive moves both in NG and WTI at the same time. No doubt that volatility may grow due to creation of shorts in high scale in both NG and WTI, but the escalation of limitation will encourage the energy consumer dragon China to quench his thirst as the U.S. President Donald Trump and Chinese President Xi Jinping agreed this month to a truce that delayed the planned Jan. 1. U.S. increase of tariffs on $200 billion worth of Chinese goods, while they negotiate a trade deal. Let's have a look at the movements of NG and WTI futures in the following charts:
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Disclaimer: This analysis is only for educational purpose. Readers are requested to kindly consider their own view first, before taking any position.
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