logo |

News

    Home   >     Industry    >     Main body

    Natural Gas Price Fundamental Daily Forecast – Weather Driven; Strengthens Over $2.678, Weakens Under $2.630

    Abstract:NatGasWeather called it “a messy” pattern this week as numerous weather systems track across the country with rain and snow.

      Natural gas futures are edging higher for a second session on Tuesday on expectations of a jump in heating demand over the near-term and forecasts calling for colder temperatures into the weekend and possibly the first week of February.

      Nonetheless, bullish speculators are still approaching the long side of the market with caution. Analysts at The Schork Report said, “The fact traders are unwilling to pay a premium to own gas for the final two delivery months of winter is as fundamentally bearish as it gets,” given that gas demand is typically the strongest in winter.

      Natural Gas Intelligence (NGI) reported that observers said hints of a cold finish to winter, however, were enough for futures to reverse course on Monday. “The supply/demand balance remains tight for when weather cooperates,” NatGasWeather said.

      At 13:39 GMT, March natural gas futures are trading $2.631, up $0.033 or +1.27%.

      Cash Market Rises

      Spot gas prices cruised higher across the Lower 48 as colder conditions swept across the West and Midwest, bringing lows near zero on Monday in northern markets such as Minneapolis, NGI reported. Forecasts showed the cold wave moving east as the week progresses.

      NatGasWeather called it “a messy” pattern this week “as numerous weather systems track across the country with rain and snow…As this system finally tracks through the East mid-week, colder air over the Midwest will spread south and eastward with lows of 0s to 30s for stronger national demand.”

      According to NatGasWeather for January 26 to February 1, “A weather system will track across the Southwest today with rain and snow, while a second system brings snow to the Great Lakes/Mid-Atlantic. The northern U.S. will be cool to cold with highs of 20s to 40s for strong demand, although countered by comfortable highs of 60s to 80s across the South and Southeast. Colder air with lows of 10s to 30s will spread across the eastern U.S. Wednesday to Friday for the strongest demand of the week. National demand will ease this weekend as warm high pressure builds across the central and southern U.S. Overall, national demand will be moderate to high over the next 7-days.”

      Daily Forecast

      The daily chart indicates the direction of the March natural gas futures contract over the short-term will be determined by trader reaction to the retracement zone at $2.630 to $2.678.

      A sustained move under $2.630 will indicate the presence of sellers. If this move generates enough downside momentum then look for a possible correction into $2.552 to $2.485.

      Overtaking $2.678 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the next potential target a major 50% level at $2.794.

    Latest News

    New Zealand Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    New Zealand Dollar
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click "Complaints "and "Correction" to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.