Natural Gas Price Forecast – Natural Gas Markets Hanging in There

Natural Gas Price Forecast Video for 23.11.22

Natural Gas Technical Analysis

Natural gas markets have been rather noisy to kick off the Tuesday trading session, gapping lower and selling off, only to turn around and show signs of life again. It looks like we are hanging around the $7.00 level, as we have rolled over into the January contract. Ultimately, this is a market that I think continues to see a lot of noisy behavior, but it looks as if we are trying to break above the island reversal that we had formed a couple of weeks ago, that would obviously be a very bullish sign.

One of the things has been working against this is that the Freeport LNG terminal is not completely rebuilt yet, meaning that some of the natural gas that could be heading to Europe is not. Ultimately, I think this is a situation where you need to look at it through the prism of cold temperatures but may have to take the European Union out of the equation. After all, tipsters in the United States have plunged and there are some issues with storage at the moment, but ultimately this is still a regional contract more than anything else.

It’s also worth noting that Qatar has signed a 27 year LNG contract with China, as the European Union continues to drop the ball. Ultimately, the Europeans will probably have to acquiesce to the Russians, but the question is how long they will hang on? At this point, from a technical analysis standpoint, if we can take out that area just above, we could see another run to the upside. On the other hand, if we turn around and break down below the $6.70 level, we could see this market drop back down to the $6.25 level.

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