Forecasts of the movement of natural gas during the coming period
Natural gas at the basic level
US natural gas futures prices rose by more than 2% to exceed USD 3.4, as the forecast of rising temperatures in mid-July reinforced expectations of a rise in demand for air conditioners.
The accumulation of inventories that came in less than expected, as well as concerns about possible winter supplies, especially January contracts are the most prominent upside risks.
Geopolitical factors continue to influence the market, as US sanctions over the Russian LNG project in the Arctic have curbed exports, and President Trump has urged the European Union to increase its imports of US LNG.
The uncertainty about the activity of tropical storms and their dual impact on both supply and demand also increased the volatility of forecasts.
At the technical level
Natural gas is still trading within a narrow range in an upward price channel on the daily frame.
He reached the lower boundary of this channel, almost rebounding from the levels of the main daily uptrend at the levels of 3.2 USD.
We expect the rise to continue towards the levels of 3.7 USD and then 4 USD in the near and medium term.
This scenario fails if the USD 3.2 levels break down, and then we expect the decline to continue near the USD 3 levels, from which we can think about buying it again.
