Natural Gas Weekly Price Outlook – Natural Gas Has a Sideways Week

On the other hand, if we break above the top of the candlestick, then I think we just continue to consolidate until winter. There are a lot of questions about what this winter will be like, not from a weather standpoint, but the fact that the Europeans are now buying $250 billion worth of American energy for the next three years in a row. And of course, they’re not buying Russian gas. So the question then becomes who’s buying Russian gas? Are there potential U.S. customers right now that will switch over to Russian gas because it could be cheaper? So, I think this is going to be a pretty tough winter.

I anticipate that the winter will be good for natural gas as usual. It might be better than we’re used to seeing. But right now, we’re in that time of year where heating demand is non-existent. And quite frankly, it’s been somewhat hot this summer in America, but not outrageously so, and as a result, electricity demand hasn’t skyrocketed either. Furthermore, speaking of electricity demand, if we do start to see a recession, that will drive down natural gas demand for electricity production, so keep that in mind. I think this past week’s candlestick is going to end up being very important.

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