Gas Prices Primed for Sustained Rally？

Author – Connor Woods, Senior Market Analyst

Date: May 25th

One of the biggest talking points of the year so far are surging gas prices, which is affecting all regions in the world. Is there a more sustained rally on the way？

Fundamental Outlook

Asian spot gas prices are as volatile as it gets right now. They have fallen about 50% from an all-time high in December, however there are three times higher than the levels seen in May last year. The conflict in Ukraine is the main reason for this due to the uncertainty it has caused over the accessibility of Russian gas supplies.

The hunt for solutions goes on, with the latest news coming out that Asian and European gas buyers are looking to long term contracts to offset the current volatility in prices.

Technical Outlook

It is very clear this is a bull market from a fundamental standpoint. The technical outlook backs this up too, with a breakout looking imminent.

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If you are someone who likes to trade the trend, then a break above the 9.053 level could be the trade to take. Traders could use the 50% of the market imbalance, with a target of a new high at 10, which many analysts are claiming is coming soon.

Everyone at Zenfinex hopes you are having a great trading week. If you would like to know more about the products we offer, feel free to visit www.zenfinex.com.

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