SaxoTV

Hansen: Twin trading tracks for oil and gas

861 views
February 27, 2015 brent, brent crude, brent geo-political, brent oil, brent price, brent spread, brent wti, brent wti spread, china, china economy, commodities, commodities markets, commodities prices, commodities supply, commodities trading, commodity, commodity gold, commodity index, commodity investing, commodity investments, commodity market, commodity markets, commodity outlook, commodity prices, commodity strategy, commodity trade, commodity trading, commoditymarket, crude, crude oil, crude oil price, crude oil prices, crude price, crude prices, crude spread, crudeoil, gas, gas industry, gas price, gas prices, gas production, gas rises, gold, gold demand, gold price, gold trade, natural gas, naturalgas, oil, oil and gas, oil commodities, oil company, oil consumer, oil demand, oil drop, oil industry, oil inventories, oil market, oil markets, oil news, oil outlook, oil price, oil prices, oil production, oil range, oil refinery, oil spread, oil stockpiles, oil stocks, oil supplies, oil supply, oil trading, oil wealth, oilsupply, russia, russia oil, russian, russian economy, russian politics, saxo bank, saxo tv, trading, tradingfloor.com, us, us dollar, us dollar index, us economy, us government, usa, usd, wti, wti and oil, wti brent, wti brent spread, wti crude, wti crude oil, wti price, wti supply, wti vs brent, wticrude
Both oil and natural gas have had two stories to tell this week. First to crude and WTI has continued to be on the defensive due to rising inventories and production. Saxo's Ole Hansen says there is also an issue with contango where the spot price is much cheaper than forward prices. He warns that this is particularly problematic for ETF investors. Brent crude, on the other hand, it still trading upwards with Hansen predicting February could be its best month since May 2009.

Natural gas is also showing divergence with US gas falling 9% due to increased production and healthy inventories. Across the Atlantic, Russia's threat to turn off Ukraine's taps has offered support to UK gas. Predicted cold weather in the UK has also helped the price.
.
Gold this week was supported by China's return from holiday following the Chinese new year. Hansen notes that Thursday's strong US data sent gold back on the defensive. But he says the USD rise hasn't been fully reflected in the gold price and has instead triggered a move in Euro gold. Hansen recommends trading gold from the long side