Outlook Today

Although the natural gas market view is still “bearish,” it is not likely that natural gas prices will move back and follow the downward underlying trend in the very short term (next few days). The fact that the near month gas futures contract closed above resistance last week suggests the market may try to move higher in the short term. The natural gas market bias is “neutral,” at least until it sees how price activity plays out over the next several trading sessions. For those buy side hedgers, it may be time to start adding to your winter hedge portfolio.

Even with WTI crude oil still trading above the $85/bbl level, the market is keeping its view at “neutral” with a bias to the “bullish” side as it seems the ability for the Europeans to solve their debt issues by Wednesday is a possibility. If major problems are solved, the markets will react positively and there will be a relief rally. If not, keep your seat belts fastened. Once the outcome is known, there will be ample time for traders to get back in.

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About JWM Energy Consultant
Professional Energy Consultant. I advise large energy-users on procurement strategies to reduce electricity and natural gas costs.

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