Gas futures as a chance to make good money this fall

There are many asset prices that are subject to seasonal influences, one of such assets is natural gas.

Moreover, prices for it are rising not only in anticipation of cold weather, but also with the worsening geopolitical shutdown.

Problems with gas supplies to Europe and the approaching winter are actively stimulating an increase in the price of this energy carrier.

The market is actively reacting to current events, and the cost of European futures has already exceeded $2,500 per 1,000 cubic meters, and on the American NYMEX gas is sold at a price above $900 per 1,000 cubic meters.

Everyone knows the reason for the rise in price - this is the limitation of gas supplies to Europe, which are caused by both technical reasons due to the limited possibility of transportation via Nord Stream 1, and political ones due to the refusal of a number of European countries to pay for energy supplies in Russian rubles and the subsequent cessation of supplies .

How strong the impact of negative news on the market can be assessed by analyzing the price of gas in Europe, which back in July was less than $1,800, and today exceeds $2,500:

Given the current situation, we can assume a further increase in the price of TTF futures. Moreover, they are still far from this year’s maximum of $3,900 per 1,000 cubic meters.

That is, we can say that when buying autumn gas futures, in the future, you can hope to receive more than 50% profitability on long transactions. And the use of leverage will increase profitability several times.

Broker for futures trading - https://time-forex.com/vsebrokery/broker-fuchersy

Of course, you need to buy TTF contracts since the price of gas on the American exchange is already at a fairly high level and there are no guarantees for its further growth.

It is advisable to enter a trade during a correction , after the rollback ends and a new price increase begins.

Alternative futures that may rise in price ahead of the winter of 2022 are oil, fuel oil and coal.