Natural Gas Price Forecast – Natural Gas Markets Plunge After Bearish InventoryNatural gas markets got crushed on Thursday as the inventory number in the United States came out at 120 billion as opposed to the expected 108 billion.
Natural gas markets got hit hard during the trading session on Thursday as the inventory number came in at 120,000,000,000 ft.³, as opposed to the anticipated 108,000,000,000 ft.³. Because of this, market participants sold natural gas as there still seems to be a serious lack of demand. Having said that, it is highly likely that we will see buyer step in and support this market sooner rather than later, as the $1.50 level has been crucial for some time. However, if we were to break down below that level it would be somewhat catastrophic for natural gas and probably accelerate that wave of bankruptcies that are sure to be coming.
NATGAS Video 26.06.20
The markets will be looking at the supply and demand question right now, and unfortunately there does not seem to be much in the way of demand. There is more than enough natural gas out there, and the cycle has definitely started to see the bubble completely bossed and the only thing we are waiting on is companies to collapse so that the supply can finally go down.
Unfortunately, it looks as if the destruction of these bankrupt companies is taking far too long, so it is a bit of a “one-two punch” for pricing. Quite frankly, natural gas is so prevalent and abundant in the United States as an example that they simply burn it off when drilling as it is a byproduct of crude oil drilling quite often. They do not even bother to collect it; it is just not worth the effort. That of course is telling in and of itself. I am looking for a bounce near the $1.50 level, back towards the $1.60 level, possibly even $1.65.
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