Natural Gas Weekly Price Forecast – Natural Gas Markets Plunge to the $2.00 Level - FX Empire

Natural Gas Weekly Price Forecast - Natural Gas Markets Plunge to the $2.00 Level

Natural Gas Weekly Price Forecast – Natural Gas Markets Plunge to the $2.00 Level

Natural Gas Price Forecast Video for 08.05.23

Natural Gas Weekly Technical Analysis

Natural gas markets have fallen during the course of the week, testing the $2.00 level. This is an area that has been very important multiple times in the past, and is quite often a point of contention during the war months. Now it does make a certain amount of sense that we would see buyers re-enter the market in this area, due to the fact that a lot of options will probably have expiration at this level. Furthermore, we are in a cyclically weak time of year, as demand for heating will dissipate in the United States. Furthermore, you also have the massive selloff that has taken a lot of money out of the market. Whether or not this remains a market that stays this depressed remains to be seen, but I do think that given enough time, we will probably see traders try to reenter this marketplace to the upside.

The reason I think that the buyers come back is simple. It’s a cyclical market, and of course this time a year heating demand is much lower in the northern hemisphere than other times of year. Furthermore, you have to keep in mind that the Europeans will have to refill their tanks by the end of the year to avoid a very cold winter. The war in Ukraine is not going anywhere, and therefore it’s difficult to imagine a scenario where the Russians suddenly are supplying gas to the EU again. Granted, the Norwegians have stepped up, but the US contract will be greatly influenced by this as Europeans will have to import LNG from Texas, Louisiana, and other parts of the United States.

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