Natural Gas Markets Get Crushed This Week

Natural gas markets have gapped lower to kick off the trading week, and then essentially fell apart. While we had recently seen a lot of movement to the upside based upon the latest storm, the reality is that we are out of the woods when it comes to that cold snap, and even if we were to get another cold snap, it is only going to end up being a selling opportunity. You can see that we have the $5.50 level during the previous week, and essentially fell out of bed. Natural gas is abundant in the United States, so it is a bit ridiculous to think that we are suddenly going to see natural gas shoot straight up in the air. True, the United States is trying to become the world’s largest LNG exporter, but we are nowhere near that right now, and that probably will not be a major driver price.

NATGAS Video 14.02.22

Underneath, the $3.50 level seems to be the target, so I think it makes quite a bit of sense that we would see sellers coming back into this market every time we do rally, and that is probably going to be the best way to trade this market, simply selling every time we get a little bit of a rally that shows the first hint of exhaustion. Because of this, I have no interest whatsoever in trying to buy this market, I think the bullish attitude of the natural gas markets are done for the rest of the year, at least until we start approaching winter again. Given enough time, I anticipate seeing $3.00 targeted.

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