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Natural Gas Price Forecast – Natural Gas Markets Drift Lower

Natural gas markets drifted a little bit lower during the trading session on Thursday, as we continue to see a lot of noise in general. Because of this, the market looks as if it is going to go reaching towards the 50 day EMA again, closer to the $2.78 level. All of that being said, I think it is only a matter of time before the market will even break down below there, because quite frankly we are getting far too close to the springtime to think that there is going to be a major push higher in the demand curve when it comes to natural gas. As the freeze in the central part of the United States starts to thaw, that also frees up more supply, which is of course negative for the market as well.

NATGAS Video 23.02.21

Longer-term, I believe that this market probably goes looking towards the $2.40 level, possibly down to the $2.00 level but I do not expect it to get there overnight. Rallies at this point continue to be sold into on the first signs of exhaustion, and I think at this point it is obvious that we are starting to rollover from the initial panic that sent the market looking towards the $3.30 level. Longer-term, natural gas continues to be oversupplied and that is not going to change anytime soon. Warmer temperatures coming to the United States will drive down demand, just as it will drive down demand in the European Union. Ultimately, the market has probably put in the top for the winter, and we are now starting to focus on the longer-term picture for the rest of the year.

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