Natural Gas Fundamental Forecast – February 12, 2016

Analysis and Recommendations:

Natural Gas soared 41 points as traders bought up the cheap commodity on the hopes of a late winter and increased heating days. Lower production is also a strong price mover ahead of today’s weekly inventory numbers. Natural gas prices continued their retreat toward the $2 mark as warming weather forecasts for late February suggest winter-heating demand won’t be enough to resolve a potentially historic glut.

Natural gas prices are trading below their 20 and 100 day moving average telling you that the short-term trend is to the downside with the next major level of support at 1.95 and if that is broken I think we could test the contract low around 1.90 as winter is coming to an end as the demand season is strongest in the month of February as its the coldest month of the year in the Midwestern part of the United States.

Natural Gas Weekly Weather Outlook

Feb 10-16th: A strong weather system and associated cold blast now covers the eastern US with below normal temperatures and areas of light to moderate snowfall, especially near the Great Lakes. Another colder reinforcing Polar outbreak will impact the Midwest and Northeast Friday through the coming weekend with very cold temperatures. This will drop lows into the single digits and below zero over the Midwest, Mid-Atlantic, and Northeast. Texas and the West will remain mostly dry and mild with above normal temperatures and highs in the 50s to 70s. Overall, nat gas demand will be HIGH.

FxEmpire provides in-depth analysis for each asset we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

WEEKLY

Natural Gas Weekly Update
Release Schedule: Thursday between 2:00 and 2:30 p.m. (Eastern Time)

Weekly Natural Gas Storage Report
Release Schedule: Thursday at 10:30 (Eastern Time) (schedule)