Natural Gas Price Forecast – Natural Gas Markets Rallied During The Monday Session To Kick The Week Off

Natural gas markets rallied during the trading session on Monday again, reaching towards the $2.40 level, but not breaking above a quite yet. That is a level that is worth paying attention to, as the market has been very bearish in that region. If we were to break above the $2.40 level on a daily close, then it’s very likely that we would continue to go much higher. Ultimately, the market breaking above there would signify that natural gas was ready to rally again, as we had gotten quite significantly sold off. This was due to warmer temperatures forecasted in December for the northeastern part of the United States, but as per usual the weather forecasts were flaky at best.

NATGAS Video 17.12.19

It looks as if we’ve got another storm heading towards the Northeast, so it would make quite a bit of sense that natural gas demand picks up again. Granted, we had drilled 17% more this year than last year in the United States, so that does weigh upon the value. Ultimately, the $2.40 level makes a lot of structural sense, so if we can get above that level, then it’s likely that the market goes to the $2.60 level. As far as a pullback is concerned, that’s fine but it’s not something I’m interested in getting involved in, as this is the wrong time of year to get overly pessimistic, despite what we have seen so far. Ultimately, I am bullish for the next month or two, and then will be looking to sell once we start looking at spring contracts again.

Please let us know what you think in the comments below