778 International Gas
In the evening, Chen Hui returned to his seaview villa in Sentosa Shengtao Bay, opened the trend chart of international commodity futures, looked at it, and selected the trend chart of international natural gas.
After a closer look, the current trend of international natural gas is very strong in the short term.
The latest natural gas inventory report released yesterday by the Energy Information Administration of the U.S. Department of Energy showed that U.S. natural gas inventories fell by 237 billion cubic feet in the week ending Feb. 7, slightly higher than market surveys suggested, with inventories falling between 228 billion cubic feet and 232 billion cubic feet.
The report also noted that natural gas inventories fell by 152 billion cubic feet in the same period last year, with a five-year average change of 162 billion cubic feet in inventories, and that the current total natural gas inventory is 1.686 trillion cubic feet, the lowest first-week inventory figure since 2004.
In addition, there were media reports yesterday that Ni Resources reported an explosion in a pipeline in Adair County, Kentucky, and crews had shut down the main valve of the pipeline to prevent leaks and isolate the damaged pipeline.
Natural gas prices jumped 40 cents, or 8.3 percent, to settle at $5.22 a million British thermal units yesterday. The contract closed almost flat on Feb. 12 and remained at $4.96 per MMBtu ahead of the Feb. 13 inventory report.
Natural gas prices have risen more than 9% in the past week, and the current closing price is the highest since Feb. 4.
"Good opportunity, now you can chase a wave of short-term growth with a small amount of money!
"Then when the natural gas rises to the highest, I will use a large amount of money to short the natural gas!"
Chen Hui plans to go long on international natural gas in the short term, that is, to chase a wave of growth with small funds.
The trading volume of international natural gas is relatively small, and short-term operations are not suitable for large funds to enter the market, and the time for large funds to enter the market is full, and the time required is also long, which is not suitable for this market at all.
Chen Hui thought about it, and still used Ling Yu'er's money to operate a wave first!
"Let's try to see how high international natural gas can rise!"
"Anyway, the loss is also the loss of Ling Yu'er's money!"
"Just be cannon fodder!"
"Of course, it's a good thing to make money!"
"Let's try to find out where the international natural gas has peaked!"
"Then use your own big money to short-hand international natural gas!"
Now Chen Hui's funds are basically all invested in the speculative market, and there are still 5 billion US dollars left in the deposit account of HSBC, but the 5 billion US dollars is a big money relative to the natural gas market.
Natural gas is a gaseous hydrocarbon produced by the long-term deposition of paleontological remains underground, slowly converted and metamorphic cracked, which is flammable and is mostly produced when crude oil is extracted in mining areas.
Natural gas has many excellent characteristics, it is one of the safer gases, it does not contain carbon monoxide, it is also lighter than air, once leaked, it will immediately spread upward, it is not easy to accumulate to form explosive gas, and the safety is higher. The use of natural gas as an energy source can reduce the amount of coal and oil used, and greatly improve the problem of environmental pollution. As a clean energy source, natural gas can reduce sulfur dioxide and dust emissions by nearly 100%, carbon dioxide emissions by 60% and nitrogen oxide emissions by 50%, and help reduce the formation of acid rain, alleviate the global warming effect, and fundamentally improve environmental quality.
The United States has the largest natural gas market in the world. The United States has the largest pipeline gas transmission system in the world, with a total length of about 450,000 kilometers, and the United States has the most developed natural gas market. In the field of natural gas production, in addition to the 30 large producers with an annual production of more than 3 billion cubic meters of natural gas, there are more than 8,000 small natural gas producers in the United States. In the field of trunk pipeline transportation, many service providers compete with each other, and in 2000 there were 38 trunk pipeline companies with more than 500,000 users. The well-developed pipeline and the entry of multiple service providers make the natural gas supplied by producers more competitive when it reaches the regional distribution pipeline system.
In 1982, only 5 percent of interstate gas transmissions were contract gas, and the rest were pipeline companies' own gas sources, and in the early 90s, 95 percent of interstate gas transmissions were contract gas, and today this proportion is 100 percent. The large number of natural gas suppliers, open and independent pipeline transportation services, and the ability of end users to regulate provide sufficient space for the long-term maintenance of the competitive pattern of the natural gas market in the United States and create conditions for futures trading.
On April 3, 1990, NYMEX listed natural gas futures for delivery at the Henry Hub natural gas processing center in Louisiana, which connected up to 12 natural gas pipelines and was an ideal place for natural gas delivery.
At present, natural gas futures are mainly used in such industries. The first is natural gas power generation. Natural gas power generation has the effect of alleviating energy shortage, reducing the proportion of coal-fired power generation, and reducing environmental pollution. Secondly, natural gas is also an important raw material for the chemical industry, which is the best raw material for the manufacture of nitrogen fertilizer, which has the characteristics of low investment, low cost and less pollution. Natural gas accounts for about 80% of the raw materials for nitrogen fertilizer production on average in the world. Thirdly, natural gas is also an important domestic fuel, with the improvement of people's living standards and the enhancement of environmental awareness, the demand for natural gas in most cities has increased significantly. The economic benefits of natural gas as a domestic fuel are also greater than those of industrial fuels. Finally, natural gas can also replace automobile oil, which has the advantages of low price, less pollution, and safety. Among these categories, electricity, industrial and residential gas use accounts for the largest proportion, while commercial and transportation gas accounts for a relatively small proportion.
There are many factors that affect the price of natural gas, the most important of which are the following. One is the big cycle of supply.
There are more than 6,500 trillion cubic feet of proven natural gas reserves in the world, and with the application of new exploration technologies to unconventional natural gas resources, the total reserves of natural gas resources could increase by 4,000 trillion cubic feet in the coming years. In recent years, the development of shale gas technology in the United States has led to a sharp increase in the production and reserves of shale gas, and the reserve-production ratio of shale gas is as high as more than 100 years, which also makes it the future energy source. The second is international energy prices. Not only the price of coal, but also the price of crude oil and the price of natural gas, because they are both energy varieties and there is overlap in the consumption sector. When the supply of these energy varieties is relatively stable, the price comparison basically maintains a range-bound oscillation, but when the output of one of these categories jumps, the balance will be broken.
The third is the law of seasonal demand. Winter is the season when natural gas consumption is the highest, and if there is a cold winter, the price of natural gas for heating will increase instantaneously, as happened in the winter of 2013 and 2014. In other seasons, natural gas consumption is relatively sluggish. Corresponding to the off-peak season, the inventory of natural gas is an indicator that investors pay close attention to, which is a reflection of both supply and demand. Generally speaking, if winter stocks are lower than the five-year average, gas prices are likely to remain strong in winter.
"Now international natural gas has been rising because of the situation in Ukraine!"
"However, soon international gas prices will cool down!"
"And the Spring Festival is about to enter, and international natural gas will peak within a week!"
"Before peaking, I'll chase a wave with a small amount of money!"
"At present, the international weather chart has just jumped more at the opening today, which is suitable for small funds to chase up!"
"In a few days, I will use a lot of money to short international natural gas!"
"Just do it!"
Chen Hui looked at the recent situation in Ukraine, because of the situation in Ukraine, natural gas and oil prices are rising!
And it's all going crazy.
But as soon as the situation in Ukraine subsides a little, natural gas will have to plummet, which is the result of the opposite of everything.
And it's spring soon, and the amount of natural gas imported in the big Asian countries will start to shrink!
As soon as he said it, Chen Hui put the money from Ling's bank card into the trading account again, 3 billion Hong Kong dollars (387 million US dollars)
At the time of the international natural gas opening, it was at the 5.400 level, and Chen Hui immediately began to buy the NYMEX natural gas futures contract.
Natural gas is traded in units of 10,000 mmbtu, quoted in USD/mmbtu, and has a minimum change of $0.001/mmbtu.
The margin per lot is $3,500, and every pip fluctuation per lot is a profit or loss of $10!
Now NYMEX natural gas is at the 5.409 position, up 9 points from the previous opening, Chen Hui still continues to buy!
Five hours later, Chen Hui bought a long position of 20,000 lots of NYMEX natural gas!
After watching the NYMEX natural gas rise to the 5.510 level, Chen Hui stopped buying.
Seeing that its trend was suppressed, Chen Hui said secretly: "Just try how the situation is in the past two days!"
"Tomorrow night, I'll open a position and buy again!"
After speaking, Chen Hui looked at the time, it was already more than three o'clock in the morning, and after taking a bath, he went to rest.
The next day, Chen Hui woke up at noon, and after washing up, Chen Hui had a simple lunch and hurried to Temasek Building.
Chen Hui spent the whole afternoon in a busy way, and time passed in a flash.
In the evening, Chen Hui and Zhou Tingting dined together, at this time Zhou Tingting put down the tableware and suddenly said: "I want to go to Xiangjiang University to study for a period of time and participate in a fashion design training class!"
"And then there's the possibility of a trip to Paris, Italy!"
"I can't bear you!"
"I'm so reluctant to you!" said Zhou Tingting and looked at Chen Hui with blank eyes.
Chen Hui smiled: "I am really reluctant, you won't tell me", Chen Hui said Zhou Tingting over, and said: "Come! Let's enjoy the moment"
Saying that, Chen Hui took Zhou Tingting to the bedroom.
More than two hours later, Zhou Tingting fainted, Chen Hui slowly got up, and opened the NYMEX natural gas chart again, and the current NYMEX natural gas opened with a gap of 140 points, from the 5.520 position to the 5.380 position.
Immediately, Chen Hui began to use Ling Yu'er's account to buy a long position in NYMEX natural gas, and a few hours later, Chen Hui added a long position of 30,000 lots of NYMEX natural gas again!
Because Chen Hui frantically bought 30,000 long positions, NYMEX natural gas has been pulled up by Chen Hui from 5.380 to 5.600!
That's a 220 point increase!
At present, Ling's account now holds a total of 50,000 lots of long positions in NYMEX natural gas, with an average position at 5.500, and a fluctuation of one point is a profit or loss of $500,000. At present, a total of 100 points of profit is made, with a total floating profit of 50 million US dollars!
Seeing that the trend of NYMEX natural gas was suppressed again at this moment, Chen Hui stopped building positions!