Natural Gas Price Outlook – Natural Gas Continues to Drift

Natural Gas Technical Analysis

The natural gas markets are a little bit negative during the early hours on Friday, but really at this point in time I think you have a situation where traders are looking at this through the prism of whether or not warmer temperatures are coming. After all, when you look at the rollover schedule, we are heading over to the March contract here in just a few sessions. So, with that, people will start to pay close attention to the idea of warmer temperatures in the United States and that does put downward pressure on that gas.

That being said, there’s also the European wildcard. Will they need to import a lot? But the latest storage that I have seen really has been, that’s more or less a UK problem, not so much continental Europe. Germany is down a bit as well, but the rest of Europe looks like it’s okay at the moment. So, I do anticipate that maybe we get another impulsive move higher at one point or another of the next several weeks, and then after that, you have to start to think that the warmer temperatures will really weigh the natural gas markets down. If we break below the $3.50, at that point, I’m willing to call it a season and start to look for selling opportunities.

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