Natural Gas Technical Analysis
The natural gas markets continue to be very noisy and choppy as we are just hanging around the 50-day EMA.
Natural Gas Price Forecast
Every new Natural Gas analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all Natural Gas forecastsKeep in mind, this is the shoulder season, meaning that we aren’t necessarily looking at high usage for air conditioning, but we’re not to the point where we are using a lot for heating as well.
The situation for natural gas might be a little bit different this year, as the Europeans will more likely than not be buying some liquefied natural gas from the U.S. And, of course, the Qatari manufacturers are having to buy from America to fill contracts in Europe.
Winter Is Coming
Quite frankly, this could be a very expensive year for natural gas in the cold weather. But right now, we still have plenty of supply in the United States. The differential between U.S. gas prices and some of the prices we see, for example, in Rotterdam, is quite drastic. That has been the case for a while, and that’s more likely than not only going to continue to get worse.
All things being equal, we continue to bounce around between $2.80 on the bottom and $3.00 on the top. We are getting ready to roll over into the November contract in about 10 days or so. That could provide a little bit of a boost for pricing because, in November, we are going to be needing more natural gas for heating.
But with that being the case, we still have to get through that massive storage amount of natural gas that we have, which is 5% over the 5-year average. So, with that, we still have a long way to go. I think that keeps this market probably somewhat choppy and noisy, but not necessarily momentum-driven.
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