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Natural Gas Price Forecast – Natural Gas Markets Crack Two Dollars

Natural gas markets dipped a below the two dollars level momentarily during the day on Friday, as the natural gas markets continue to struggle. This being the case, there is nothing good looking about this chart, and as a result it’s likely that the market will continue to be miserable.
Christopher Lewis
natgas

Natural gas markets broke down significantly during the trading session on Friday, breaking below the $2.00 level as it was announced that the weather that had been heading towards the northeastern part of the United States may not be hitting that area, and perhaps drifting higher into Canada, causing warmer temperatures yet again. If that’s going to be the case, it’s a simple extension of what we’ve seen all winter, warmer temperatures with an extremely oversupplied market. After all, the market has seen the Americans drilled 17% more than the previous year, so that obviously means that we continue to struggle to lift pricing.

NATGAS Video 20.01.20

That being said, I would expect a short-term bounce, but that short-term bounce is certainly something that isn’t going to have a lot of legs. With this, the market is likely to see a lot of negativity, but ultimately, we are getting a little bit extended to the downside, having said that we have also made a fresh, new low. There should be a bit of a bounce coming, so if you’re quick and nimble you might be able to take advantage of it. The real trade is probably going to be in the stock markets shorting natural gas related companies that are about to go bankrupt. After all, we are almost trading the springtime now, at least as far as the futures markets are concerned. With that, the market is likely to see a lot of opportunity to sell.

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