Welcome to Extreme Investor Network, your go-to source for all things stock market, trading, and Wall Street. Today, we are discussing the latest updates on the natural gas market and what it means for investors.
Currently, stocks are 435 Bcf higher than last year and 633 Bcf above the five-year average of 1,650 Bcf. Weak demand continues to be a concern for natural gas markets as production cuts have not made a significant impact on the supply/demand balance.
The demand for natural gas remains low, with uninspiring weather forecasts expected to keep demand suppressed in the coming days. Prices have moved lower following the release of the EIA report, which showed a storage build that exceeded analyst estimates.
Unfortunately, there are no indications that the supply/demand balance has improved in recent weeks, leaving natural gas bulls with few positive catalysts in the current market environment. From a technical standpoint, natural gas is range-bound between the support levels of $1.60 – $1.65 and resistance levels of $1.95 – $2.00. While there was an attempt to test the $2.00 level, the disappointing EIA report may push prices towards recent lows near $1.70.
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