Natural gas prices may rebound to $2.5 due to production slowdowns, high demand, and export increases

From Investing.com: 2024-07-31 04:35:00

Natural gas prices have been declining, reaching below $2 per mmBtu due to excess supply and a mild winter. However, production slowdowns and record high summer temperatures could boost demand, signaling a potential price rise. US exports to Asia and Europe are expected to increase, with dominant market share in Europe at 48%. Inventory levels are currently 16% above the five-year average, with slower replenishment rates indicating a potential price hike. High demand for electricity production from natural gas driven by weaker wind energy and high temperatures may further support a price increase. Technical indicators suggest a possible rebound in natural gas prices, targeting $2.5 and potentially $3.40 in a bullish scenario.



Read more at Investing.com: Natural Gas Ripe for a Rebound? Bounce to $2.5 Likely as Bulls Defend Key Support