Arlington, Virginia – October 7, 2016 – By employing their proprietary modeling and intelligence of both market fundamentals and price/volume term-structure, EVA has positioned its Daily Natural Gas Advisory clients ahead of one of the largest non-fundamental price moves of the past three years. Through continuous observation of flat price, spreads, volumes, volatilities and how all four interact to signal future probabilities of price outcomes, EVA counseled its Daily Advisory clients that despite some of the most fundamentally bearish data of the injection season to date, price risked substantial moves higher given the emergence of strong money flows from outside participants.
Monday, October 3, EVA Daily Advisory clients were equipped with an understanding that, despite some provocatively-low daily production estimates, internal fundamentals had turned quite bearish relative to the prior four weeks. But this shift in internal fundamentals notwithstanding, the “headline” production figures risked evoking a large, bullish buying response from a particularly powerful segment of the natural gas market.
The final element was a review of proprietary term-structure modeling outcomes from the October 5 NYMEX session, which pointed to particular pricing results not seen in nearly four years, and yielded a call to clients that new highs were ahead and that a sustained upward move was likely in progress.
To better understand the mechanics and the drivers of this price move and whether those drivers are durable, along with the potential for a variety of downstream consequences – and to be better positioned for such future moves – contact Erik Schwartz, Vice President of Marketing at Energy Ventures Analysis to inquire about the opportunity for a trial to EVA’s market-leading Daily Natural Gas Advisory Service.