The forecast for natural gas rose sharply on Friday, although forecasts for November have shifted from a cold-blooded forecast to a near-half gain in demand.
On Friday, December, natural gas futures rose $ 5,461, $ 0.115 or + 2.15%.
NatGasWeather ፡ Climate forecasts cool in early November, Middle East and Northeast
NatGasWeather wrote on Friday that moderate temperatures could continue until the end of the month and reduce demand in general. However, forecasts for the Middle West and Northeast have cooled for November. The news has given some reason to speculate that the demand for heating in those areas may increase in the near future.
“While the upcoming pattern is still boring, the data to open the week is not as weak as it used to be,” said Natas Weather. The design will be even more impressive in the first week of November, if not for the next two-thirds of most of the southern United States.
“In the first week of November, we have to be careful here because it doesn’t take much cold in Canada to cool down in North America,” NatGasWeather said. “In our view, the current disaster weather information will add little interest to the beginning of November.”
Specified weather services address the potential for severe weather changes
“We will continue to see models increase in closing latitude in early November, which may not be so cool here and now, but colder air than normal air will eventually increase the risk of being involved on the road,” he said.
The 15-day view now extends to the start of the warm-up season, “it will be a much heavier weather forecast,” the company added.
EBW Analytics Team ‘Significant Profit’
“If the meteorological signs are getting colder in mid-November,” and the LNG said, “If the November contract options are higher at the same time as Tuesday and the final settlement, a big profit could be made,” the EBW team said Friday.
“Currently, the market position suggests that at least a slight cooling is needed, or recent declines may extend from the low to the mid-$ 4.00 / MMBtu range,” EBW analysts said. “Any significant cold kick before Thanksgiving, however, could bring prices back to the highest level north of $ 6.00 / MMBtu.”
Technically, the main support zone is from $ 5,269 to $ 4,956. This area stopped selling on October 19 for $ 5,070. If not, they could fall to target prices that could drop by $ 3,944. This could happen if November’s new forecasts are hotter than usual.
On the other hand, buyers must pass two defensive zones from $ 5,551 to $ 5,713 and $ 5,832 to $ 6,011 before the market reaches a high of $ 6,593.