From Investing.com: 2025-02-07 05:14:00

Natural gas futures are anticipated to mimic the movements seen in late January 2025 in the upcoming week. The escalating trade war between the US and China has put American gas exporters at risk of losing their foothold in the rapidly growing LNG market. China’s imposition of a 15% tariff on US LNG in response to US tariffs on Chinese exports is expected to lead to a significant drop in natural gas prices.

In response to President Trump’s announcement of a 10% tariff on Chinese imports, Beijing retaliated by imposing a 15% tariff on US liquefied natural gas. This move is likely to prompt US fuel buyers to divert supply to Europe, where gas prices are currently stronger than in Asia. The impact of these tariffs is expected to have a bearish effect on natural gas prices in the coming week.

Factors such as a milder weather forecast for the second week of February 2025 and Europe’s reduced gas usage due to coal-switching may contribute to downward pressure on natural gas prices. Technically, natural gas futures are trading below the 50-day moving average, indicating a potential slide if they break below the 100-day moving average. The futures could retest a significant support level at the 200-day moving average in the next week, with the possibility of a steep decline if this support is breached. Readers are advised to exercise caution when considering positions in natural gas futures based on this analysis.



Read more at Investing.com: Natural Gas Under Pressure: Could Feb Mirror Jan’s Last Week’s Bearish Trend?