Price forecast for natural gas – The markets for natural gas continue to plunge

The natural gas markets plunged during the trading session on Wednesday, as we continue to see the milder temperatures in the US act as a destructive ball for pricing. Unfortunately, most retailers, and frankly some professionals, have no idea that this is a US contract. It does not matter what is happening in Europe, and that is the most important thing I can give you at the moment. The reason is that the USA can only export around 12,000,000,000 ft.³ natural gas, which is nowhere near making a dent in what is happening in the EU.

NATGAS Video 02.12.21

At the same time, falling temperatures in the US will of course be bullish for this market, but honestly this looks like another mild winter. In other words, demand is not going to be as strong as one might think. Furthermore, we trade the January contract, so this is the absolute “high season”[ads1]; for demand for natural gas. If we continue to see temperatures look somewhat up, it will mark the end of the trend.

Furthermore, I think we need to worry about whether there will be enough industrial demand or not, as there are many concerns that the economy is slowing down. Inflation seems to be at its peak, and it has its say in this market as well. If that is the case, raw materials can generally be in trouble. Natural gas was undoubtedly exaggerated to begin with, and now that we have broken through the bottom of a massive descending triangle, it is possible that we continue to go much lower. I’m now looking for signs of exhaustion too short.

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