Sat, Well you know, this is magic you have brought here. MAGIC! $4.50c you say...
As the article below hints, the weather is changing and storage is low and so prices are on the rise.By Jim Hyerczyk - Nov 10, 2018, 6:00 PM CST
Natural Gas Soars As Crude Enters Bear MarketThis week has been the tale of two markets. One being driven lower by a gradual shift in the fundamentals to bearish, the other driven higher by the emergence of a surprise shift in a weather pattern. Crude oil has turned bearish while natural gas is set up for perhaps a test of prices not seen in nearly 4 years later this winter.
Crude Oil
Sellers continued to pound crude oil prices lower this week
- Sorry unless Yemen gets going, I'm not going oil...
Natural GasNatural gas price gapped higher on Monday and never looked back all week as traders reacted to a surprise shift in the weather forecast. Although Thursday’s U.S. Energy Information Administration’s weekly report showed a larger than expected storage build, traders shrugged off the report as old news while looking forward to increased demand due to an upcoming cold spell.
Prices are expected to remain underpinned as long as the forecast calling for cold temperatures through November 17-18 remains intact.
All eyes are on November 17-18 because there are new forecasts calling for milder temperatures setting up November 19-22. The December Natural Gas futures contract is also likely to get most of its support from the cash market.
Our first target area at $3.359 to $3.604 is currently being tested. Trader reaction to this zone will determine the near-term direction of the market. If the weather forecasts continue to promote cold temperatures after November 18, prices could soar through this zone. If the forecasts come in as expected then look for this zone to act as resistance.
Due to a storage shortage at the start of the heating season. We’re going to maintain an upside bias throughout the winter.
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