Natural Gas Price Forecast: Continue to Press Higher After Sudden Drop

Natural gas markets initially pulled back during the trading session on Wednesday, reaching down towards the $2.60 level. The $2.60 level of course is the top of the gap underneath, so it does make a certain amount of sense that we have seen buyers in that area. That being said though, I still think that we are not that far away from some type of selling event, due to the fact that we are getting very close to start looking at the springtime contracts. The winter contracts have been a bit of a bus, and although I do think that there is probably one more last attempt to go higher, it is only a matter of time before we sell off yet again.

NATGAS Video 07.01.21

Signs of exhaustion on a move higher is exactly what I am hoping to see, so that I can get involved and start selling for the springtime move. Eventually, we will see a lot less demand for natural gas, and that is essentially one of the cyclicality’s of this market. Quite frankly, natural gas tends to move on the latest weather reports, meaning that it is by its very nature a short-term type of market. However, it should be noted that as it is typically used as a heating fuel in the United States, that has a massive influence on the market in general.

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