Natural Gas Weekly Price Forecast – Natural Gas Markets Climbed From The Lows

Natural gas markets have rallied a bit during the week, reaching towards the $2.25 level. The $2.25 level being broken to the upside allows for natural gas markets to look into the significant amount of noise above that extends all the way to the $2.50 level. That being said, I think that we are getting close to a bit of a bounce, but that bounce should be a nice buying opportunity to sell. At this point, we are extremely cheap, but I think it’s only a matter of time before we find sellers, so this is a scenario where I’m looking to fade signs of exhaustion on any pop. Longer-term buying opportunity will probably not present itself, at least not as easily as selling any pop will.

NATGAS Video 13.01.20

The colder temperatures in the back half of January could push this market higher, but I think you should let that push his market to the upside so that we can sell against as natural gas is extremely oversupplied in the Americans have drilled 17% more natural gas than they did the previous year. Oversupply is a major issue and I think it will continue to be going forward. Quite frankly, this is a market that is much easier to sell that it is to buy. At this point, breaking down below the $2.00 level does look very unlikely, but if we were to break through there it would be extraordinarily negative. Patience will be needed in order to benefit from the longer-term trend.

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