Chevron strike won't create impact on natural gas price

Chevron strike unlikely to create lasting impact on natural gas prices

Handelsvolymerna i Chevron (CVX) ökade med mer än 200 procent förra veckan på Capital.coms handelsplattform, där handlare ökade sin långa exponering mot olje- och gasaktien. Under samma period ökade handelsvolymerna för naturgas med 47 procent över hela plattformen globalt. Handlarna var till övervägande del nettolång (75 procent lång) naturgas. Intresset för CVX och priset på naturgas kommer när arbetare vid Chevrons anläggningar för flytande naturgas i Australien inleder stridsåtgärder i en tvist som kan sätta ytterligare press på globala leveranser och bidra till stigande energipriser.

Trading volumes in Chevron (CVX) rose more than 200 percent last week on Capital.com’s trading platform, where traders increased their long exposure to the oil and gas stock. In the same period, natural gas trading volumes increased by 47% across the platform globally. Traders were predominantly net long (75 percent long) natural gas. Interest in CVX and the price of natural gas comes as workers at Chevron’s liquefied natural gas plants in Australia take industrial action in a dispute that could put further pressure on global supplies and contribute to rising energy prices.

Kyle Rodda, senior market analyst based in Capital.com’s Melbourne office, said: “The Chevron strike is just the latest shock to the gas markets. Negotiations are ongoing, but it seems that neither party is willing to budge, at least publicly. Chevron takes a hard line – it is not clear that workers know the full and global consequences of their actions.

We have already seen an increase in natural gas prices due to the risk that 7% of the world’s supply could be disrupted. The volatility has attracted traders who are well aware of how quickly prices can rise. Despite the short-term risk, the strike at Chevron Australia is unlikely to create the kind of shock we saw in 2021 and 2022, which was exacerbated by the pandemic, wild weather and Russia’s invasion of Ukraine.

Prices are still below USD3, which is still lower compared to prices during the 2021/22 supply shocks when natural gas prices were trading above nine dollars. Beyond that, storage levels in places like Europe are much higher, with supply chains more resilient than they once were.

Still, an increase in natural gas prices could cause headaches for businesses and consumers, with inflation remaining at uncomfortable levels, especially given the recent rise in oil prices.

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