Natural Gas Price Forecast – Natural Gas Markets Continue To Drift
Natural gas markets fell a bit during the trading session on Wednesday, as we continue to see a lot of bearish pressure in this commodity. Ultimately, the market is very likely to continue to see a lot of pressure in both directions, because quite frankly the weather hasn’t been cooperating. Yes, it’s been cold in the United States, but the Americans drilled an extra 17% from the previous year, and at this point it’s very likely that the market is going to continue to struggle. If we get a nasty cold snap though, it’s very likely that the market should reach towards the $3.00 level. The initial barrier is the $2.40 level though, and as we get the inventory numbers, we should get an idea as to whether or not things are getting better or worse.
NATGAS Video 19.12.19
That being said, we are at the very end of the year so liquidity will be an issue. Ultimately, the market seems to have a significant amount of noise baked into it, not the least of which would be bearish. At this point, we need to see a massive breakout to the upside soon or this winter will have been a complete disaster for natural gas producers. What is even more ominous is the fact that we have all of that extra supply that has been drilled, and if it doesn’t get work through over the winter, it could cause massive disruptions in this entire industry. Caution is the better part of valor here.