The launch of a new mechanism for joint purchases of natural gas in the European Union may influence natural gas pricing. The new project will help avoid a repeat of last year's energy price spikes.
The AggregateEU platform was officially launched Tuesday. Companies can submit their gas demand forecasts for the year starting in June.
Sellers and buyers will be able to select and conclude the most profitable deals after collecting and analyzing the data and submitting bids. It will be possible to conclude a contract on their own or with the help of special agents. EU members expect the signing of contracts on the platform to begin in June. Some non-EU countries have also been offered to participate in the deals.
The mechanism is intended to ensure the filling of almost 15% of Europe's natural gas storage facilities, which is nearly 14 billion cubic meters a year. EU members are required to fill 90 % of their natural gas storage facilities by November 1, 2023, compared to 57% as of April 24, 2023.
Competition on this platform might limit the ability of companies to sell gas at inflated prices. In addition, the transparency of the platform might contribute to price stability and prevent surges in gas prices, which will have a positive impact on the economy as a whole.
Tomorrow at 5:30 PM MSK, data in U.S. natural gas inventories will be released. Inventories are projected to decrease from 75 million cubic meters to 69 million cubic meters. Confirmation of the forecast will support natural gas prices.
After the price broke out of the downtrend on the H4 timeframe, the gas quotations started to form an uptrend.
The price forms the third ascending wave on the H1 timeframe. The breakout of the top of the first wave at 2.380 has already taken place, and it opens further prospects for the gas price's growth.
Signal:
Long-term prospects for natural gas are purchasing.
Target is at the level of 2.820.
Part of the profit should be fixed around the level of 2.560.
Stop-loss is around the level of 2.215.
The bullish trend is short-term, so choose a trading volume of no more than 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
