Increased shale production and just overall large supplies of natural gas have haunted this market for years. Natural gas supplies are expected to be around 2.977 trillion cubic feet. This is 9% below a year ago levels but 5% above the 5 year average. You can see the big time heat that has helped natural gas prices rally the last week or so. If this heat were to maintain itself most of the summer, then prices could have the chance to reach $4.00 . Whether this happens or not is reserved only for paid daily subscribers here who receive up to the minute weather and trade suggestions in multiple markets. ONE HINT–The may be a change in the pattern towards cooler weather as the ridge moves west. If this happens, it could result in a sell-off soon for natural gas. But for how long?
The heat above is helping natural gas prices bounce up against resistance on the charts.
It will all depend on the dome below (red). If this can continue to affect the southern U.S. natural gas production areas and the Midwest, then Natural gas prices have little chance to fall very far this summer, but there are some signs of at least a short term pattern change.