Global brokerage firm XTB has released a new report to help commodity traders navigate unusually high volatility in the natural gas market. The report from XTB’s award-winning team of market researchers covers all the latest global events impacting the price of natural gas, plus spotlights short-term and long-term opportunities for traders who want to take advantage of the volatility.
Natural gas is one of the most widely traded commodities in the world and the market for gas is global. It plays a critical role not only in manufacturing and fertilizer production, but is also essential for electricity generation and winter heating in homes across the US and Europe.
The new natural gas report is free for XTB clients, including new traders who open a risk-free demo account today.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
What’s Happening in the Global Natural Gas Market?
While energy markets are volatile, the global natural gas market has been relatively stable in recent years. Production has been steady thanks to hydrofracturing wells in the US and stability in Russia, the world’s second-largest producer of natural gas. At the same time, the gas market relies on long-term supply contracts that keep prices from changing quickly.
However, the COVID-19 pandemic, Europe’s accelerating transition to clean energy sources, and Russia’s war in Ukraine have upended the status quo. The COVID-19 pandemic caused a sudden and unexpected decline in natural gas demand and corresponding cuts to production. As the global economy recovered from the pandemic, natural gas prices spiked since production has been slower to come back online.
At the same time, the transition to renewable energy sources in the US and especially Europe has created long-term headwinds for natural gas supply and demand. No one is quite sure at what speed the energy transition will happen, creating uncertainty – and thus volatility – around medium-term supply and demand for natural gas.
These events were already creating volatility in the natural gas market when Russia invaded Ukraine in February 2022. The war has had dramatic effects on the natural gas market. Numerous European countries have voluntarily cut their use of Russian natural gas. There remains the possibility that Europe and the US could sanction Russian gas companies, such as the state-owned producer Gazprom.
The situation was exacerbated by blasts around the Nord Stream gas pipelines, which deliver natural gas directly from Russia to Europe. The country behind these blasts has not yet been identified, but the sabotage demonstrated that natural gas flow to Europe could be cut off suddenly and without warning.
XTB’s report looks carefully at all of these compounding events in the natural gas market. It dives into analysis of the war in Ukraine and possible impacts on gas prices as Europe heads into cold winter months. The report also considers the long-term impacts of the clean energy transition on natural gas prices and how natural gas might flow in a world divided into East and West.
Open an XTB account today to get your free copy of the report.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trading Natural Gas with XTB
XTB is a global brokerage firm that offers trading on energy commodities such as natural gas, crude oil, gasoline, and carbon credits. Natural gas traders can access leverage up to 67:1 and trade from spreads as low as 0.01 pips. That’s among the lowest spreads for natural gas trading of any major broker.
There’s much more to XTB than commodities trading. The brokerage offers trading on more than 25 commodities, 57 forex pairs, 1,900 stocks, 150 ETFs, and 49 cryptocurrencies. The broker also offers access to its own custom trading platform, xStation 5.
In addition to special reports like the new natural gas report, XTB’s in-house team of analysts releases daily coverage of global markets. Traders can find updates about the latest headlines and price moves along with technical analysis of key commodities and forex pairs.
Please be aware that the presented data refers to the past performance data and as such is not a reliable indicator of future performance.
XTB is trusted by traders around the world and is widely considered one of the best CFD brokers today.
XTB is free to join and doesn’t require a minimum deposit to open a new trading account. The broker doesn’t charge account fees or commissions. Plus, traders can try out XTB risk-free by opening a demo account. All XTB clients get full access to the broker’s natural gas report at no cost.
About XTB
XTB was founded in 2002 and has earned the trust of nearly half a million traders who rely on this brokerage. XTB operates in numerous countries around the world and has offices in the UK, Spain, France, Turkey, Portugal, Germany, and Poland.
XTB holds licenses from multiple top-tier regulatory authorities, including the UK’s Financial Conduct Authority (FCA), the Cypress Securities and Exchange Commission. The company also received licenses in 2021 to expand into the UAE and South Africa.
All trading on XTB is through contracts for difference (CFDs). The broker offers more than 2,100 instruments to trade.
Open an XTB account today to get your free copy of the broker’s natural gas report.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.