Blog Details
Natural Gas Outlook: Bears in Firm Control after Warmer Weather Forecast (Dec 29, 2020)
Natural Gas Talking Points
- Natural gas bears in firm control following warmer-than-expected forecasts
- EIA inventory storage levels remain supportive of lower prices in the near term
- The technical structure offers little for upside movement in the heating gas’s chart
Natural gas prices fell to a new multi-month low earlier this week. NYMEX prices are now only days away from securing the largest monthly drop since December 2018, with a current monthly loss of just over 19%. The heating gas has seen exceptionally bearish movement since early November, as warmer-than-average temperatures across much of the United States have fueled bearish sentiment.
Prices don’t appear poised for a near-term recovery with the most recent 8-14 day temperature outlook from the NWS showing higher than average temperatures across much of the nation. However, Alaska and the Southwestern US is slated to see average to below-average temperatures over the next two weeks.
