Natural gas futures have reached a two week high today as the outlook for the preferred air-conditioning fuel was seen bullish with “warmer than normal” forecasts across most of the country. Natural gas futures are up just over .04 cents today currently trading above $2.74 per million btu’s for September delivery at the New York Mercantile Exchange.
Just yesterday, forecasters called for “scorching heat” across most of the USA through Labor Day causing natural gas traders to bid-up the energy almost .10 cents. The high at our nation’s capitol is even expected to be three degrees higher than normal to start September off.
“We’ll see demand for natural gas (futures) as long as the weather stays warm and especially when it continues outside its normal parameters,” said Laura Taylor, a senior market strategist at RJO Futures in Chicago, sharing her fundamental assessment of the natural gas futures market. Taylor added, “I think natural gas traders biggest concern right now though continues to be the higher than normal inventory of the fuel.”
Natural gas futures is at a crossroads at this time with a high-top possibly in place. If natural gas futures sustain trade below $2.50, then it can lead to a bigger sell-off, but a breakout above $3.00 resumes the up-trend.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.
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