Natural Gas Price Forecast – Natural Gas Markets Continue to Consolidate

Natural Gas Price Forecast Video for 02.05.23

Natural Gas Technical Analysis

Natural gas markets continue to grind back and forth as we try to find out which direction we are ready to go. After all, natural gas markets have been beaten down rather hard, and therefore you would have to assume that there are people out there willing to pick up a little bit of value, assuming that the market is going to turn back around. A lot of it comes down know how long you can hang on to it as well, because position sizing in the natural gas market relies heavily on what financial asset you are using.

At this point, one has to wonder whether or not the demand for natural gas is going to continue to be weak, due to the fact that temperatures are rising, and of course the global economy seems to be slowing down, meaning that we will probably see a lot less demand for electricity. After all, if there is recessionary concerns, it stands to reason that the market will more likely than not continue to see a lot of concern when it comes to whether or not there will be enough electricity demand to drive natural gas demand.

That being said, once we get through the summertime in the northern hemisphere, then it’s likely that we could see a little bit of a boost late in the year due to colder temperatures, and the fact that the Europeans will have to refill their natural gas stocks as the war in Ukraine seemingly has no end in sight. In other words, the next couple of months might be somewhat quiet, but eventually we should see a big move to the upside.

For a look at all of today’s economic events, check out our economic calendar.