The price of gas and all that,,,

[Simpo Two]

Gas seems to be the new boom industry - somebody's making money.

Sooooo... can one invest in this area (or related industries) or is it too late to be worthwhile?

[bogie]

I bought some more Shell shares at £10 last year...still good VFM at £16 considering they were £25 prior to Covid

https://www.reuters.com/article/us-ceraweek-energy...

[Simpo Two]

bogie said:

I bought some more Shell shares at £10 last year...still good VFM at £16 considering they were £25 prior to Covid

Yep; I sold most of mine earlier in the year because the capital loss was useful. Swings and bloody roundabouts!


Any other ideas for opportunities amongst the panel?

[VR99]

Aside from the Power & Gas traders who might be doing ok, I can only think some type of ETF that tracks one of or a combo of Gas indices?
Personally it's not for me and I'l stick to my boring Equities funds and ETFs but good luck!

On a more light-hearted note if you can find a way to either manipulate the physical gas prices or better still have storage for Gas....job done!

[abzmike]

If you're not in already, it's probably too late for this cycle.

[vulture1]

Agreed too late to jump on. I'm waiting for a buy into a short gas but also buying more miners are now they are out of favour.

[Mr Overheads]

Putin announced this afternoon that Russia woudl supply more to stabilise European prices. Prices have dropped for last few hours.

It's currently an unsustainable bubble. This morning prices fluctuated by up to 3p/kWh, yesterday was 37% higher than Monday! When just 1 year ago the retail delivery price of Gas was 2 to 3p!

[Simpo Two]

VR99 said:

On a more light-hearted note if you can find a way to either manipulate the physical gas prices or better still have storage for Gas....job done!

Not storage but the opposite - blow up a refinery to put the prices up...

S'funny, I think of Shell as an oil company but I suppose where you get oil you also get gas. But then I haven't heard of Shell Gas...

Seems that this industry has a coal face (no pun intended) where prices go up or down 37% in 3 days, and the rest lumbering along behind. Too complex for me to make direct investment decisions I think.

[bogie]

Simpo Two said:

VR99 said:

On a more light-hearted note if you can find a way to either manipulate the physical gas prices or better still have storage for Gas....job done!

Not storage but the opposite - blow up a refinery to put the prices up...

S'funny, I think of Shell as an oil company but I suppose where you get oil you also get gas. But then I haven't heard of Shell Gas...

Seems that this industry has a coal face (no pun intended) where prices go up or down 37% in 3 days, and the rest lumbering along behind. Too complex for me to make direct investment decisions I think.

Im sure I read recently more than 50% of Shell business is from gas....in 2016 they acquired BG group from British Gas.

https://www.economist.com/business/2021/04/22/oil-...

[Nimby]

According to Private Eye the sole UK fertiliser / CO2 manufacturer CF didn't stop production recently because the price of gas made it uneconomical.

The Eye says that industry buys gas well in advance at a fixed price, and it was more profitable for CF to sell their gas option than using it.

[Register1]

Mr Overheads said:

Putin announced this afternoon that Russia woudl supply more to stabilise European prices. Prices have dropped for last few hours.

It's currently an unsustainable bubble. This morning prices fluctuated by up to 3p/kWh, yesterday was 37% higher than Monday! When just 1 year ago the retail delivery price of Gas was 2 to 3p!

How do you find that information >?

[GT03ROB]

Simpo Two said:

Not storage but the opposite - blow up a refinery to put the prices up...

S'funny, I think of Shell as an oil company but I suppose where you get oil you also get gas. But then I haven't heard of Shell Gas...

Seems that this industry has a coal face (no pun intended) where prices go up or down 37% in 3 days, and the rest lumbering along behind. Too complex for me to make direct investment decisions I think.

Most gas we use has never seen a refinery…….so blowing one up wouldn’t make much difference.

When you find gas with oil, the gas is usually waste & in the bad old days would have been flared. Now it tend to get pumped back in the wells to get more oil!

[Mr Overheads]

Register1 said:

Mr Overheads said:

Putin announced this afternoon that Russia woudl supply more to stabilise European prices. Prices have dropped for last few hours.

It's currently an unsustainable bubble. This morning prices fluctuated by up to 3p/kWh, yesterday was 37% higher than Monday! When just 1 year ago the retail delivery price of Gas was 2 to 3p!

How do you find that information >?

Gas intraday prices: https://www.theice.com/products/910/UK-Natural-Gas...

Even worse Electric had a 100% swing today!!! 200p/therm to 400p/therm and almost back again. Not surprisingly most suppliers pulled their price books.

Electric: https://www.epexspot.com/en/market-data?market_are...

[vulture1]

Register1 said:

Mr Overheads said:

Putin announced this afternoon that Russia woudl supply more to stabilise European prices. Prices have dropped for last few hours.

It's currently an unsustainable bubble. This morning prices fluctuated by up to 3p/kWh, yesterday was 37% higher than Monday! When just 1 year ago the retail delivery price of Gas was 2 to 3p!

How do you find that information >?

Bloomberg news is pretty good but the market will still be ahead of you.

I was watching it the moment the first vaccine went public (ie knowledge of it) and I was online my share account at the time. Everything jumped up 20% instantly or down instantly depending on if it was a covid defence stock Pelaton dropped like a stone and the travel stocks rose like mad.

[Simpo Two]

Mr Overheads said:

Even worse Electric had a 100% swing today!!! 200p/therm to 400p/therm and almost back again. Not surprisingly most suppliers pulled their price books.

'Kinell. Suddenly crypto looks stable.

Should the global energy system really be subjected to such market craziness? It can't always have been this silly.

[vulture1]

Simpo Two said:

Mr Overheads said:

Even worse Electric had a 100% swing today!!! 200p/therm to 400p/therm and almost back again. Not surprisingly most suppliers pulled their price books.

'Kinell. Suddenly crypto looks stable.

Should the global energy system really be subjected to such market craziness? It can't always have been this silly.

Oil was negative $30 in early lockdown.

[Simpo Two]

vulture1 said:

Oil was negative $30 in early lockdown.

I mean historically, not the last 18 months. How much of it is due to the internet I wonder?

[Meeten-5dulx]

IG Index allow you to trade / punt on Nat Gas.

With the volatility we have seen of late, I’m not sure I’d want to…

Recall I was trading it for a company when the Langeled pipeline came I stream and uk gas prices went negative…. 15yrs ago on Oct 1-2. Not sure that’s been seen again since….

[GT03ROB]

Simpo Two said:

Mr Overheads said:

Even worse Electric had a 100% swing today!!! 200p/therm to 400p/therm and almost back again. Not surprisingly most suppliers pulled their price books.

'Kinell. Suddenly crypto looks stable.

Should the global energy system really be subjected to such market craziness? It can't always have been this silly.

The price of oil has been volatile at least since the 70s. It is used as a weapon of war (or diplomacy depending on your point of view). in '73 the Arab world declared war on the west the only way they could using oil. It will always be subject of volatility, this is why many large consumers purchase ahead & lock in prices for years ahead.

This year has seen almost a perfect storm in the gas market with consumption being driven up very high & well above normal due to certain circumstances in south America & China. At the same time Mr Putin has decided to have a spat with europe over gas supplies & pipelines. While also in europe the wind hasn't blown as much.

.