Natural Gas Weekly Price Forecast – Natural Gas Markets Give Up Gains for the Week

Natural gas markets have initially tried to rally during the course of the week but gave back the gains as temperatures in the United States remain stubbornly elevated. That drives down demand for natural gas, and of course the US is already replaced all of its supply after the floods and hurricanes earlier this year. Now that Saul out-of-the-way, we can go back to the trading the latest weather report type of market that this typically is. That being said, if we were to get a sudden cold spike, that would be very temporary at best as far as pricing is concerned. Rallies at this point in time remain to be sold, especially as we have not even hit the “measured move” of the triangle that we broke down through.

NATGAS Video 03.01.22

That “measured move” is to reach down towards the $3.00 level, an area that this market is very comfortable sitting around anyway. Because of this, I truly believe that we get there given enough time and therefore I look at any opportunity to sell at a higher price as the best way to trade this market. Currently, we are trading the February contract which means we are not that far from trading spring contracts. Natural gas pricing normally falls off of a cliff during that timeframe anyway, so there is nothing on this chart that should be thought of as abnormal. The oversupply natural gas in the United States has been an issue for multiple years, and certainly did not change this year despite the fact of what has been going on in Europe and Asia.

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