US NATGAS: Canadian Gas Producers Scale Back on Price Slump: Argus
Aug-07 12:25
Canada’s natural gas sector is slowing, with producers cutting back on drilling and shutting in output amid four-decade low prices, Argus said.
- In June, only around 160 rigs were active — the lowest in two years and down 17% from June 2024.
- The downturn has particularly affected dry gas producers, whose output lacks profitable condensates.
- Arc Resources, Canada’s third-largest gas producer, shut in 360 mmcf/d of dry gas in Q2 due to weak market conditions. However, the company remains optimistic amid the expansion of Canadian LNG exports.
- Arc has signed long-term deals with US LNG firm Cheniere Energy, indexed against benchmarks such as JKM and TTF.
- Other producers, including Canadian Natural Resources, are reducing activity, awaiting price improvements driven by the LNG Canada terminal, which began exports in July.
- While it may take 4-7 years for producers to fully meet LNG-driven demand, there is likely to be strengthening in the local AECO benchmark and a narrowing gap with Henry Hub as exports rise.
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AUD: Some upside Momentum in the AUDNZD
Jul-08 12:23
- The Aussie is still trading on the front foot, all a continuation since the unexpected hold from the RBA Overnight.
- While the Dollar has been paring some losses throughout the early European session, taking its cue from the higher US Yields, there's some upside momentum in the AUDNZD here, through a fresh intraday high, and the AUDNZD could now target the May's high at 1.0922.
BUND TECHS: (U5) Bear Cycle Extends
Jul-08 12:17
- RES 4: 132.42 2.000 proj of the May 14 - 20 - 22 price swing
- RES 3: 131.95 High Jun 13 and the bull trigger
- RES 2: 130.76/131.33 High Jul 4 / High Jun 20
- RES 1: 130.10/130.51 Intraday high / 50-day EMA
- PRICE: 129.61 @ 13:01 BST Jul 8
- SUP 1: 129.39 Intraday low
- SUP 2: 129.30 Low May 22
- SUP 3: 128.97 Low May 14 and a reversal trigger
- SUP 4: 128.90 Low Apr 10
Bund futures are trading lower today, extending Monday’s sell-off. Support at 129.77, the Jul 3 low, has been cleared. The clear break confirms a resumption of the recent bearish theme and opens 129.30 next, the May 22 low. On the upside, resistance around the the 50-day EMA, at 130.51, has recently been pierced but for now, remains intact. A clear break of it is required to highlight a possible reversal.
EGB OPTIONS: RXQ5 128.50/127.50 Put Spread Sold
Jul-08 12:15
RXQ5 128.50/127.50 put spread 3K given at 15.
