The key energy giants have sought after lesser Chinese customers, sidestepping the state firms that have monitored imports, in a bid to counter a global gas glut.
Amid the more rivalry in the energy sector, for smooth the progress in a shift from coal to cleaner fuels has been allowed by the Chinese government, a policy shift that has enabled smaller domestic companies to strike deals with multinational oil majors.
Chevron and France’s Total SA reached agreements this year to supply LNG to Hong Kong-listed gas company ENN Energy Holdings Ltd.
Chevron will also sell LNG to JOVO Group, a south China private energy company, while BP PLC has agreed to sell gas to China Huadian Corp., for as much as half a billion dollars a year over the next two decades.
In anticipation of booming global gas demand in recent years, Royal Dutch Shell PLC , Chevron Corp., Exxon Mobil Corp . and others built big projects to liquefy and ship gas, increasing the global supply.
Technically, as stated in our previous post, WTI crude price has been spiking higher through (4H chart) showing momentum in rallies after the formation of breakaway and runaway gap patterns that’s been traced out on daily plotting.
The current prices of WTI crude are well DMAs but restrained below resistance of , for now, the price band has been stuck in the range of $50 and $54.50 levels, the break above 54.50 levels to evidence more environment towards $60 levels.
evidences the upward convergence to the price spikes. While curves have been indecisive but bias (both on daily and weekly basis).
To substantiate this stance, weekly signals upswings to extend further.
On weekly plotting, we’ve observed DMA crossover to signal the extension of the uptrend.
Hence, we don’t encourage long-term short build ups hereafter; instead, we encourage longs in WTI crude of near-month expiries for targets of 54.48 levels with strict stop loss of 52.27 levels, thereby, the trade carries attractive risk reward ratio.