Welcome to the Extreme Investor Network, where we provide you with the latest updates and insights on the Stock Market, trading, and all things Wall Street. Today, we’re diving into the world of Natural Gas and its impact on the market.
The recent bearish engulfing candle on the 2-hour Natural Gas price chart has signaled strong downward momentum, with immediate support levels at $2.58. If prices break below this level, we could see further testing at $2.54 and $2.49. But what factors are driving these price movements?
One key factor is the impact of Middle East peace talks and the U.S. power surge on Natural Gas prices. The possibility of peace talks in the Middle East has led to a temporary dip in prices, as geopolitical tensions ease and supply fears diminish. However, this decline may be short-lived as U.S. power producers continue to increase natural gas-fired generation, pushing demand to record highs.
In fact, Natural Gas has accounted for a staggering 46% of total U.S. power generation since June, defying climate goals to reduce fossil fuel use. The U.S. remains the leading driver of global natural gas consumption, with gas-fired generation reaching 55.6 million megawatt-hours in the first nine months of 2024, a 5% increase from the previous year. Despite efforts to reduce fossil fuel reliance by 2030, power producers in the U.S. show no signs of slowing down their gas usage.
Adding to the mix is the looming threat of Hurricane Milton, expected to hit Florida as a Category 4 storm. The storm’s path through the Gulf of Mexico has already disrupted natural gas production, and further demand reductions are anticipated due to potential power outages and cooler temperatures in affected regions.
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