Why Investors Should Expect Volatility in Natural Gas in the Near Term

Natural gas makes lower lows, but recovers on January 10 Open interest is rising- A bearish sign How low can it go? In November 2018, the price of nearby natural gas futures on the NYMEX division of the CME rose to a high of $4.929 per MMBtu. By the end of the second week of January 2019, the price was trading at $3.423, 30.6% below the high, and on its way to a low of $2.029 in August last year, the lowest price since 2016 and 58.8% below the 2018…

Time is Running Short for the Natural Gas Market

  Estimize expected a 93 bcf withdrawal Natural gas continues to struggle Time is running short   Energy markets were wild this week. The price of nearby NYMEX crude oil futures traded in a range from $59.15 to $65.65 per barrel since January 3. The tensions in the Middle East translated to a wide range in the oil market. Meanwhile, the price of natural gas was almost unconscious. Over the same period, the range in the active month February futures was from $2.083 to $2.185 per MMBtu. Natural gas was…

Another Disappointing Inventory Report for the Natural Gas Bulls

The consensus estimate was for a withdrawal of 82 bcf Natural gas below the $2.20 level The New Year means spring is around the corner Happy New Year to all! All the best for a happy, healthy, safe, and profitable 2019. It is now the roaring 2020’s, and it did not take long before lots of action in markets returned across all asset classes. On the first trading day of the New Year, US stocks moved significantly higher. After the markets closed, news that a US airstrike killed Iranian General…

Natural Gas: What can lift prices with inventories at the current level?

  Natural gas retreats to below $2.20 per MMBtu A triple-digit withdrawal, but a warm holiday across the US Only short covering can lift the price with inventories at the current level   The Christmas holiday on Wednesday caused a one-day delay in the release of the latest natural gas inventory data from the Energy Information Administration. The was not a white Christmas in the US on December 25 as the temperatures in Chicago reached almost 60 degrees. New York and Boston were above freezing, so the demand for heating…

Natural Gas Stocks are High, But the Price Remains Deeply Oversold

  Price weakness early in the week The market expected a draw of around 53 bcf Stocks are high, but the price remains deeply oversold Natural gas futures on the New York Mercantile Exchange division of the CME gapped lower from the low of $2.328 last Friday, December 6, to its high of $2.258 per MMBtu on Monday, December 9. The price action created another void on the chart. The island reversal from early November remains intact far above the market price, which was below the $2.30 level following the…