Natural Gas Price Forecast – Natural Gas Markets Fall Yet Again

Natural gas markets have broken down a bit during the trading session on Friday again, as the market continues to show signs of weakness. Quite frankly, the oversupply of natural gas doesn’t seem to be going the way anytime soon, and therefore I think that rallies will continue to be sold. We are starting to see a little bit of a bounce late in the day but that’s probably just people taking profits into the weekend.

NATGAS Video 02.03.20

The inventory figure this week was miserable, showing that there is not enough demand still. The lack of demand by the markets for natural gas continues to hamper any type of price appreciation, but quite frankly we have much bigger issues than that now. The oversupply simply is going nowhere until there are bankruptcies in the United States. We are about to see massive credit issues for a lot of the companies that have been supplying the market was so much natural gas, and that will force bankruptcies. That in turn will eventually disrupt supply, something the market desperately needs. Until then, it’s all but impossible to buy this market, because quite frankly there are too many things working against it.

Furthermore, the weather in the United States continues to be warming up, and that will drive down demand as well. At this point in time, there’s nothing good about this market in fading the rallies continues to be a major issue. The $1.80 level would be the first place at be looking to sell on signs of weakness, followed by the $2.00 level after that. In fact, I see the $0.20 region as an entire barrier that will be broken.