Yahoo Finance Natural Gas Weekly Price Forecast – Natural Gas Breaks Two Dollars
Natural gas markets have absolutely collapsed on Friday, breaking below the $2.00 level. By doing so, we have made another fresh low, showing that the weekly chart sets up for a big move lower. Unfortunately, we are in somewhat unknown territory at this point, and we are starting to see some of the larger companies that drill natural gas make plans to cut back production. Quite frankly, there’s no money to be made in this commodity anymore and therefore it’s difficult to imagine a scenario where natural gas doesn’t have a horrific year.
NATGAS Video 20.01.20
That being said, you should still be looking for rallies to sell, but the real trade is probably going to be shorting natural gas suppliers and drillers in the stock markets. Bankruptcies will run rampant, as we are already starting to see large companies be downgraded to junk status as far as credit is concerned. We are about to see a major shakeup in the industry, and the fact that the cold temperatures simply haven’t shown up to the northeastern part of the United States this winter has caused major issues for demand as well. Furthermore, market participants will continue to see this is a market that can’t be trusted, and the fact that the Americans had drilled 17% more this past year than they did the previous year, should continue to put a major anchor around the market. Quite frankly, I just don’t see a path to higher pricing anytime soon, and this winter it must be said has ended up being a complete disaster.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
