Nov. 26 at 5:23 PM
$VG
I’m trying to learn but as I understand it, if LNG prices increase in America but are decreasing in Europe, then VG’s profits shrink, which has been the trend lately hurting VG,
Say, VG buys the natural gas say 3 dollars , if price is high not good, turns to LNG for 1 dollar, ships or sells to Europe for 10 dollars meaning 6 dollars of gross. But if natural gas costs 4 dollars turning to LNG costs 1 dollar so 5 dollars total and LNG price in Europe is coming down which it’s has, to say 7, then ur looking at 2 dollars gross.
Essentially we want natural gas prices low in America and high in Europe… and the trend is the opposite right now
No numbers there accurate but u get the idea, I don’t see any commentary of this on here making me think we’re all just sheep, who don’t totally understand that VG’s short term profitably could be quite effected, how ever could be offset by increased cargo loads and shipping fees increasing.
Anyone have thoughts that knows this process well?
