Natural Gas Price Forecast – Natural Gas Markets Running Out of Steam?

Natural gas markets have been parabolic for a while, as we crashed through the $3.40 level and shot straight up in the air. That being said, a lot of this more than likely will come down to the heatwave that we have seen in the western part of the United States, driving up massive amounts of demand. With this being the case, it is no surprise that we have seen the markets rally. However, the biggest problem natural gas has is that it is natural gas. What I mean by that is that there is more than 14,000,000,000,000 ft.³ of known reserves in the ground in the United States alone. Furthermore, Canada has even more. In other words, supply is never going to be a long lasting issue.

NATGAS Video 01.07.21

To the downside, the $3.40 level should be worth paying attention to, as it was the breakout point, and massive resistance previously. In other words, “market memory” could come into play and support the market. All things been equal, as long as we can stay above there you have to assume that we are going to see bullish pressure. However, if we did break down through there, it is very likely that the market will see the longer-term downtrend continue, but I think that is more than likely going to be a lot of noise between now and then. With that being the case, be cautious but recognize that we have quite a significant amount of support underneath. With this, a little bit of patience may go a long way in the natural gas markets going forward.

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