Natural Gas Price Forecast – Natural Gas Markets Continue to Show Volatility

Natural Gas Price Forecast Video for 11-01-2024

Natural Gas Technical Analysis

The natural gas markets seem hesitant to break above the previous resistance around $3.33, likely due to their reliance on a single storm. While gas prices could rise further, it’s just a matter of time before the momentum dwindles. When that happens, natural gas markets will slam straight back down. We are essentially at the top of the overall consolidation range that I think we probably hang out in most of the year.

The market breaking back below the $3 level would probably send traders back in to start shorting again, perhaps driving natural gas down to the $2.70 level, maybe even $2.50 after that. Natural gas supplies are plentiful, and even though we’re going to get a big draw on natural gas supplies over the next several days, the reality is that the futures market is already pricing in February. We’re really not that far from spring at this point when it comes to pricing.

So, while we may get a spike or two along the way, the winter has been a huge bust for natural gas and unless we see something drastic happen meteorologically, it’s just really difficult to imagine that natural gas is going to take off, despite the fact that everything was lined up for it to happen this year. Lack of European supply doesn’t seem to be draining the American supply and, therefore the price that you see, which is based on the US contract, remains somewhat suppressed. Regardless, I think this is a situation where we have gotten too far ahead of ourselves, and we need to be very cautious about trying to buy the natural gas markets all the way up here.

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