Natural Gas Forecast: Technical Breakdown May Accelerate as Fundamentals Wane
2021-03-16 04:30:00
Thomas Westwater,
Analyst
Natural Gas Forecast – Talking Points
Natural gas demand may take big hit on warmer-than-average temperature forecast
Seasonal shift in temperature likely to keep pressure on prices from the demand side
200-day Simple Moving Average in focus as trendline break sees prices moving lower
The most recent 8- to 14-day temperature outlook from the National Weather Service’s Climate Prediction Center paints an unfavorable picture for natural gas prices. Forecasted temperatures in the northeastern and western portions of the United States will be above average over the next two weeks. The south will likely be cooler than normal. Overall, the expected warmer weather – especially across the northeastern US – will likely weigh on demand, driving natural gas prices lower.