Natural Gas Fundamental Analysis November 24, 2015 – Forecast

Analysis and Recommendations:

Natural Gas fell 54 points to 2.237 as temperatures remained warm and energy prices around the world tanked.  Natural gas prices continue to move lower due to extremely warm weather in many parts of the United States as prices are still trading below their 20 and 100 day moving average as this has been an outstanding trend to the downside over the last several months as who knows how low prices can go, however we are entering the winter months which can send prices up tremendously and also very quickly due to extreme cold weather.

Natural gas prices are on thin ice as inventories swell to record-high levels, with U.S. inventories topping 4 trillion cubic feet for the first time in history. Natural gas inventories usually hit their apex in late October before the heating season kicks into full swing, but mild weather has led to ongoing inventory builds into November, adding to the surplus.

Natural Gas Weekly Weather Outlook

November 20-25th: A strong weather system and associated cold blast will track across the central and eastern US this weekend, with a swath of snowfall through the central Plains and lower Midwest. This will drop temperatures over the northern US into the teens and 20s, with 30s deep into Texas and the Southeast. Another reinforcing cold blast will follow Sunday Night into Monday before warm high pressure returns by the middle of the week. The Western US will be mostly mild and dry this weekend, apart from the Northwest where a Pacific system will push inland. This storm will strengthen early next week with increasing valley rains and mountain snows, including into California, with a more impressive cold blast to follow at the end of the week. Overall demand will increase to HIGH Saturday-Thursday then back to MODERATE.

FxEmpire provides in-depth analysis for each currency and commodity 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.

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)