Natural Gas Price Forecast – Natural Gas Markets Rollover

Natural gas markets have rolled over a bit during the trading session on Tuesday, breaking below the $1.80 level to show signs of weakness yet again. Quite frankly, it’s difficult to imagine a scenario where natural gas demand is suddenly going to pick up while the global markets and global economy slows down. That being said, we are at extreme lows so I think that the $1.60 level underneath will probably hold at the same time. Ultimately, this is a market that is being a bit erratic due to the fact of other markets being thrown around but quite frankly there’s no demand.

NATGAS Video 18.03.20

There is the warmer temperatures coming, demand will drop naturally anyway, and we are most certainly in an oversupplied marketplace. At this point, it’s likely that the markets will continue to punish bullish moves, as are simply far too much out there for the lack of demand that we will be seen. Furthermore, it’s not until we get bankruptcies in the United States that enough of the supply will be taken off of the market for demand to finally catch up. Until that happens, I am much more comfortable fading rallies than anything else. I’m not necessarily thinking that the $1.60 level gets taken out, but I certainly believe that we could reach down towards that area again. On the other hand, if we did somehow break above the $2.00 level it’s likely that the market could take off to the $2.20 level. That seems to be very unlikely though.