{"id":153402,"date":"2019-08-13T10:45:16","date_gmt":"2019-08-13T14:45:16","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=153402"},"modified":"2019-08-13T07:04:11","modified_gmt":"2019-08-13T11:04:11","slug":"gas-oil-analysis-usa-increases-lng-export-will-the-gas-oil-quotations-increase","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/08\/gas-oil-analysis-usa-increases-lng-export-will-the-gas-oil-quotations-increase\/","title":{"rendered":"GAS\/OIL Analysis: USA increases LNG export. Will the GAS\/OIL quotations increase?"},"content":{"rendered":"
August 13, 2019<\/div>
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By IFCMarkets<\/a><\/strong><\/p>\n

USA increases LNG export<\/strong><\/p>\n

In this review, we suggest to consider a personal composite instrument (PCI) & GAS \/ OIL. It reflects the dynamics of changes in the cost of American natural gas relative to American West Texas Intermediate (WTI) light oil. Will the GAS\/OIL quotations<\/a> increase?<\/p><\/blockquote>\n

Their increase means that natural gas is in higher demand than oil. According to the International Energy Agency (IEA), global oil demand in May 2019 decreased by 160 thousand barrels per day (bvd) compared to May 2018. From January to May this year, it grew by 520 thousand BVD, which was the minimum increase since the crisis of 2008. The IEA lowered its forecast for global oil consumption growth in 2019\/20 to 1.1 and 1.3 million bwd and noted that the main increase will be concentrated in China, the USA and India. At the same time, the IEA expects an increase in OPEC oil production by 2.2 million bwd in 2020. The trade war between China and the United States can slow down the global economy and oil demand. We note the publication of weak macroeconomic data in European countries. UK GDP growth in the 2nd quarter of this year was worse than forecast and amounted to 1.2% in annual terms. Germany’s foreign trade surplus and its industrial production in June were also worse than expected. In turn, spot prices for natural gas in the US at the Henry Hub terminal in Louisiana are now near a 20-year low. Market participants do not exclude their upward correction against the background of an increase in the export of American liquefied natural gas (LNG) from 3 billion cubic feet per day in 2018 to 6.9 billion in 2020.<\/p>\n

\"GAS\/OIL\"<\/p>\n

On the daily timeframe GAS\/OIL: D1<\/b> is in a neutral trend. Most of technical analysis indicators have generated uptrend signals. Further growth is possible in the event of a decrease in global oil demand, an increase in US LNG exports.<\/p>\n