Natural Gas Price Forecast – Natural Gas Markets Attempting to Stabilize

Natural Gas Price Forecast Video for 10.11.23

Natural Gas Technical Analysis

Natural gas markets have had a rough several sessions this week, but it looks like as we creep into the back half of the week, stabilization might be in the cards. After all, we are heading into a seasonally bullish time of year, and therefore I think there’s a certain amount to the cyclical trade that could be taken into context. As temperatures plummet in the northern hemisphere, demand for natural gas will start to peak.

The Europeans also have to worry about a lack of Russian gas, the Nordstream II pipeline sabotage, and of course the pipeline between Estonia and Finland that seems to have been sabotaged as well. Beyond that, there are some issues with Qatari gas, which came in the form of Qatar forming a massive contract with the Chinese, thereby taking a lot of its gas off of the market, and then of course the natural gas pipelines in Western Africa which are in the midst of several coup d’état’s that have disrupted the political situation in countries such as Burkina Faso and Niger. In other words, the Europeans have a major problem this winter.

The solution will be rather obvious, and that will be to import liquefied natural gas from the United States. This is where the natural gas contract comes into the picture, because it is based on natural gas coming out of the US, specifically a terminal in Louisiana. With that being the case, if the winter is even remotely cold, natural gas is going to spike quite drastically.

I have been in this market for several months now, but I have been doing it with the ETF market, which allows me to keep the leverage down to an absolute minimum. If you do not trade in ETF markets, you can also look into CFD markets, because they allow you to size your position accordingly. This is not the type of market that you want to get aggressively levered in, because it does tend to move on to the latest weather report for the next 7 days on top of everything else. Unless you are a meteorologist in the northeastern part of the United States, that’s going to put you at a disadvantage.

For a look at all of today’s economic events, check out our economic calendar.