Natural Gas Price Forecast – Natural Gas Markets Continue To FightThe natural gas markets continued to try to find support during the Monday session, as we are at extreme lows. At this point in time, it looks as if the natural gas markets are trying to save themselves, because quite frankly we are at ridiculously low levels.
Natural gas markets have gone back and forth during trading on Monday, as we are below the $2.20 level. However, this is a market that is struggling with a lot of different problems at the same time. One of the most obvious ones is the fact that the Americans drilled 17% more natural gas supply during the last year than they did the previous one. Further exacerbating the oversupply issue is the fact that the temperatures in the United States have been warmer than anticipated. Ultimately, this is a market that is struggling with several issues at the same time, including the fact that the Russians and the Ukrainians have come to terms on a pipeline, and that increases supply in the European Union.
NATGAS Video 07.01.20
We are currently in the middle of a major support level that extends from $2.20 down to the $2.00 level. That being the case, there should be plenty of opportunities for a bit of a bounce in this general vicinity, and if the market can retake the $2.25 level it may have a bit of a continuation to the upside. Ultimately though, the natural gas markets need a massive cold snap or something like that in the United States in order to drive up demand, which could drive up price. In the short term though, short-term rallies can be taken advantage of only if you are nimble enough. With this winter being as bad as it’s been for natural gas, 2020 could be a horrific year as oversupply is only going to get worse because we are using as much as usual.