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The march of natural gas prices still continues

Post striking a close three-year high of USD4.20/MMBtu last week, the prices of natural gas have overturned sharply, causing emerging worries that the optimistic party could have come to a sudden end. natural gas futures slithered additional 4% on Thursday to be traded at USD3.90/MMBtu the U.S. EIA accounted that natural gas injections increased by 49 billion cubic feet for the week that ended on August 6, 2021, beyond the 44 billion cubic feet average projection by analysts.

Gas prices have now fell four times in 5 assemblies as hitting close three-year highs in the exact same bounce.Yet, to the longs, last trading session’s peak above USD4.20 foretells even better times onward; to the market bears, the unusual bull march that has succeeded since the starting of the 2021 has run out of steam in the end.Here’s the reason bulls still have better opportunities in the market.

Low Levels of Inventory

The march of natural gas prices still continuesAs per the market analysts, temperature irregularities that have inclined in the direction of the cooler side of the spectrum have been primarily driving the slowing natural gas demand. Sadly, for the market bulls this is likely to hasten in the upcoming weeks as summer temperatures start to fall, thus causing demand fall to continue.

The key concern among the nation is that natural gas stocks may not be sufficient to last through the winter. The storage inventories in the U.S. are facing challenges to fill-up this injection season, as robust power burns and strong export demand have left small extents of gas to refill stocks.However, the long term overlook for the industry looks optimistic for now.

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