Natural Gas Price Forecast – Natural gas markets fall slightly on TuesdayNatural gas markets pulled back a little bit during the day on Tuesday to withdraw from the $2.30 level. At this point, it’s very likely that the market is going to continue to suffer a bit of a malaise, as we await weekly inventory numbers and the G 20 meeting.
It seems as if the entire financial system is frozen right now, waiting to see what happens at the G 20 between the Americans and Chinese. While at first glance this shouldn’t have any effect on the natural gas markets, the reality is that it does in the sense that nobody knows what the risk appetite and growth prospects will be going forward as there is so much in the way of uncertainty. The $2.30 level of course is an area that was previous support so it makes sense that it is resistance right now.
NATGAS Video 26.06.19
I think signs of exhaustion will be sold, extending all the way to at least the $2.40 level if not further. This is wrong time of year for natural gas to be strong, so any pop that we would get in price due to the meeting between the Americans and the Chinese will be short-lived at best, and quite frankly should be thought of as a gift to start shorting yet again. This market has been negative for reason, and probably the worst one out there: the fact that we have more natural gas then we know what to do with.
The $2.00 level underneath is probably what the longer-term target will end up being, but it’s going to take a while to get there. Ultimately, this is a market that should continue to attract a lot of attention but the real trade will be later this year when the colder temperatures start to hit, and people start to worry about eating the northern hemisphere. We are at least three months from that though.
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