Welcome to Extreme Investor Network, where we provide unique insights and analysis on the stock market, trading, and all things Wall Street. Today, we’re diving into the world of natural gas and exploring the impact of Hurricane Milton on the market.
Despite a slight drop in prices on Monday, natural gas found support at $2.711, a key pivot level that traders are keeping a close eye on. If the market breaks below this level, further support zones are at $2.662 and $2.610, with the major resistance zone standing between $2.937 and $3.110. This resistance range could continue to hinder any upward movement unless strong bullish momentum emerges.
Looking at the weather forecast, NatGasWeather’s October 8-14 outlook predicts generally mild temperatures across the U.S., except for hotter conditions in California, the Southwest, and Texas. Additionally, Hurricane Milton is set to bring heavy rains and winds, leading to temporary power outages and cooling temperatures in Florida. This could result in low demand for natural gas through Sunday, further exacerbating the bearish sentiment in the market.
The path of Hurricane Milton through the Gulf of Mexico, a significant natural gas production hub, has raised concerns about potential production disruptions. However, these worries are tempered by the anticipated drop in demand due to the storm’s impact. Analysts expect the storm to weaken before landfall but remain dangerous, with sustained winds and storm surges in the Tampa Bay region.
In terms of market forecast, the short-term outlook for U.S. natural gas futures remains bearish due to the cooling effect from Hurricane Milton and subsequent power outages. However, potential production disruptions in the Gulf of Mexico could provide some support to prices. Traders should stay informed on weather patterns and updates on the hurricane’s impact on production and consumption to navigate the market effectively.
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