Natural Gas Price Forecast – Natural Gas Markets Have Tough Day with Warmer Weather Coming
Natural gas markets initially tried to rally during the trading session on Thursday again, but gave back the gains as weather reports suggest that temperatures will be much warmer in the next few weeks, perhaps ending the massive super cycle of demand coming out of the winter storm season, and as the natural gas supply being frozen in Texas is going to be coming to an end soon.
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With this being the case, I think that we will start to see the springtime trade, meaning that natural gas will continue to fall. Quite frankly, this was already starting to come to fruition before the freak storm hit the central part of the United States. This is simply offered an even better place to start selling natural gas, because as spring comes to demand will plummet.
To the upside, the $3.40 level is a bit of a ceiling in the market as it was a major swing higher, and I would be surprised if we broke above there. I have zero interest in trying to buy this market, because the longer-term trend will be lower, despite the fact that there is always some new narrative about how natural gas is going to change the world.
The reality is that we have so much natural gas that the supply will always overwhelm demand because any time natural gas prices rise, there are plenty of companies willing to pump it into the system. That being said, I believe that we are going to reach down towards $2.30 over the next several months.