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Hansen: Twin trading tracks for oil and gas

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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.
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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