Natural Gas Price Forecast – Natural Gas Markets Make Another High

Natural Gas Technical Analysis

Natural gas markets continue to attract a lot of volatility and upward momentum as the Wednesday session has seen it break above the $9.00 level. By doing so, the market looks as if it is ready to go forward and think about the $10.00 level. The Europeans trying to buy all of the LNG in North America possible has been a major contributor to what we are seeing here, but it should be noted that the supply continues to get tighter, and therefore it is probably not going to be a huge surprise to see more upward pressure. Pullbacks continue to be buying opportunities, and at this point, I think something is about to break.

Demand will almost certainly drop, based on price alone. However, as the Europeans are meddling in North American markets now, this has changed a lot of the price action. The biggest problem that Europeans will have is that there is not enough capacity in the market to convert LNG back to natural gas, so even though they could be quite easily served in theory, the reality is much different. Because of this, it’s very likely that we will continue to see higher prices than supply would suggest.

On pullbacks, the $8.00 level looks to be supportive, so any attempt to get back down to that level almost certainly finds buyers. The $10.00 level will have a lot of psychology attached to it, so I would anticipate that there would be a significant amount of profit-taking in that region. The $10.00 level will more likely than not cause a lot of headline noise as well, so be prepared for that.

Natural Gas Price Forecast Video 26.05.22

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