Natural Gas Price Forecast – Natural Gas Still Looking For Buyers

Natural Gas Price Forecast Video for 31-01-2024

Natural Gas Technical Analysis

The natural gas markets have rallied slightly during the early hours on Tuesday, but at this point, I think we’re still in a situation where traders are trying to sort out what the bottom of this market looks like. Could it be at the $2 level? Could it be at the $2.20 level?

I suspect it’s probably a little bit of both. What I mean by this is that we should have a bit of a range of support, while $2.50 could be a significant pivoting point for the market or fair value level and then breaking above there could open up a possibility of a move to the $3 level. The absolute high of the market is 3,33$, and I don’t think we will break above there anytime soon. I think at this point, we are probably trying to form some type of consolidation phase, consolidation range, if you will, for the entirety of the year. Given enough time, I do think the buyers are going to come back into this situation and try to push, but there are plenty of historical precedents to be between the two-dollar and the three-dollar level.

The winter is all but over and at this point, you can see that market participants will continue to have to trade the latest weather report. Basically, there is a lot of natural gas demand out there, but there’s a massive amount of supply, so that means the winter simply wasn’t cold enough to push prices higher. That being said, futures traders are already starting a price in March, so there’s not a lot to push this higher except for some type of conflict causing issues with natural gas supply coming out of the Middle East. Furthermore, there are a lot of concerns about attacks in the Red Sea that could continue to disrupt some type of supply as well. Joe Biden has recently declared war on LNG coming out of the United States, so they could also affect things as well so hang onto your hats.

For a look at all of today’s economic events, check out our economic calendar.