Natural Gas Price Forecast – Natural Gas Markets Get a Beating From Freeport

Natural Gas Technical Analysis

Natural gas markets have gotten beaten down during the trading session on Tuesday, as the Freeport terminal has announced that repairs are going to take longer than anticipated. While this makes LNG less likely to be exported, it should be noted that that is one of the major drivers of price. In other words, the situation in Europe just got a whole lot direr.

With that being the case, we may have to focus on US demand, and although there is a heat wave in the United States at the moment, there’s nothing in the United States that suggests $9.00 is a sustainable price of natural gas, something that quite frankly we have almost as much as we have water.

With this being the case, it’s very likely that natural gas will continue to suffer as long as the Europeans cannot drive up the price of LNG. If there is a lot less LNG to export, suddenly the Russian position gets a lot more interesting, as they now have even more leverage. Eventually, the European Union will acquiesce to Russian demands, and therefore things will stabilize.

However, we are nowhere near that at the moment so be advised that things could be quite messy. I suspect that there is a significant amount of support at the $7.00 level, and then again at the $6.50 level. Rallies at this point will have to contend with the $8.00 level and overtaken on a daily close to unwind some of the significant damage.

Natural Gas Price Forecast Video 15.06.22