Natural Gas Price Fundamental Daily Forecast – Series of Big Injections Coming That Will Shrink Storage Deficit

April 17th, 2019

Natural gas futures are trading lower on Wednesday . The May natural gas futures are trading $2.52, down $0.044.

Bearish traders could also be reluctant to short into weakness this close to major support at $2.50.

Changes in Forecast Coming?

“If current weather forecasts hold, the past few days could prove to be an important turning point for natural gas futures,” according to EBW Analytics Group.

“Prior to this past weekend, temperatures in Week 2 had been expected to be cool enough to potentially push prices back up, at least for a short-time period.

The weekend forecast shift, however, most likely negates this scenario,” the firm said.

“If current forecasts verify, however, the resulting drop-off in weather-driven demand is likely to pull natural gas prices down further,

even if Sabine Pass returns to full capacity,” EBW CEO Andy Weissman said.

Storage Deficit Likely to Shrink

Even if cooler temperatures return, buyers are not likely to overcome strong headwinds which will likely prevent a significant rally at any time during the next few weeks.

This is because “monster injections” are expected the next two weeks, with a series of 100-plus Bcf injections to follow.

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