Natural Gas Markets Continue to Pressure Big Figure

Natural gas markets have been bullish during the course of the week, but we continue to struggle near the $5.00 level. This is an area that I think will continue to cause a certain amount of resistance, especially as the market had fallen rather hard from that level previously. When I look at this chart, it appears that we are retesting a major selloff point, and therefore I would not be surprised at all to see it roll back over.

NATGAS Video 07.03.22

However, commodities are doing fairly well there might be a little bit of a “knock-on effect” out there, due to the fact that we have seen so much in the way of inflation-fighting. Commodities are a great way to fight inflation because they do by the very nature get more expensive, but natural gas is going to be an outlier going forward as we head into spring temperatures in the United States. Because of this, I think that the market is probably going to find its way back down towards the $4.50 level, and then the $4.00 level. However, if we were to break above the $5.00 level, the $5.50 level will probably end up being a bit of a barrier.

Keep in mind the temperatures in the northeastern part of the United States are going to start to rise again, and therefore the demand for natural gas will drop rather significantly. While there is certain pressure coming from European demand, the export part of the natural gas markets in the United States is still relatively small.

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