Natural gas price forecast – Natural gas markets hit another high

Technical analysis natural gas

Natural gas markets continue to attract a lot of volatility and upward momentum as Wednesday’s session saw it break above the USD 9.00 level. By doing this, the market looks like it is ready to move forward and ponder the $10.00 level. The Europeans trying to buy all possible LNG in North America have been a major contributor to what we see here, but it should be noted that supplies are getting tighter, so it probably won’t come as a big surprise to see more upside busy to see. Pullbacks continue to buy opportunities, and right now I think something is going to break.

Demand will almost certainly fall based on price alone. However, as the Europeans are now meddling in the North American markets, this has changed a lot of the price action. The biggest problem Europeans will have is that there isn’t enough capacity on the market to convert LNG back into natural gas, so while they can be served quite easily in theory, the reality is quite different. Because of this, it is very likely that we will continue to see higher prices than the supply suggests.

On a pullback, the $8.00 level appears supportive, so any attempt to return to that level will almost certainly find buyers. The $10.00 level is going to involve a lot of psychology, so I would expect to see a significant amount of profit taking in that region. The $10.00 level is also likely to cause a lot of headline noise, so be prepared for that.

Natural gas price forecast Video 26.05.22

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