Natural gas futures extended its sell-off from yesterday reportedly as forecasts predicted for cooler temp’s in the heartland to the eastern regions are driving prices lower. Natural gas futures are down 34 points today currently trading at $2.153 per btu at New York’s Mercantile Exchange.
This is the time of year when natural gas traders try to determine spring gas demand by closely monitoring weather forecasts just before warmer weather increases demand. Warmer weather in the southern states is cooling and models now predict “mostly average to below normal temperatures” in the continental 48 states.
Laura Taylor, a senior market strategist at RJO Futures in Chicago, shared her fundamental view of the natural gas futures market by stating, “It’s not long until the gas-fired electrical demand is here.” Taylor adds, “The natural gas trade is eager to get this market going, but a sustained demand outlook is what most needed.”
Natural gas futures trend is slightly bullish. After this recent sell-off it appears natural gas futures is prime for another spike higher, but for consumers the energy prices are still relatively low.
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