Technicals and Fundamentals Agree: Nat Gas Should Move Higher
Natural gas has had a fast start to 2014, up 10.7 percent, but respected technician J.C. Parets believes this trade still has room to run higher.
The combination of fundamental tailwinds out of Eastern Europe listed below and the technical setup should provide traders with an opportunity to cash in on natural gas price increases.
Russia possesses 27 percent of the worlds natural gas reserves and provides 23 percent of Europe's natural gas demand.
Europe's natural gas storage levels have been dropping from 49.28 percent full on February 28th to 46.05 percent full on Friday.
Late last year, Ukraine entered into agreements with Royal Dutch Shell and Chevron to invest in natural gas exploration and development, in an effort to become less reliant on Russia's state owned and run gas company, Gazprom.
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