Natural gas markets fell sharply on Wednesday as we continued to see moderate temperatures in the United States continue to be a bargaining chip. Unfortunately, most retailers, and really few professionals, are unaware that this is an American contract. It does not matter what happens in Europe, and it is the most important thing to convey to you right now. The reason is that the United States can only export about 12,000,000,000 ጫማ of natural gas, which is nowhere to be found in the EU.
NATGAS Video 02.12.21
At the same time, the fall in temperatures in the United States will certainly be very difficult for this market, but it really looks like another mild winter. In other words, interest is not as strong as one might think. We are also trading a January contract, so this is the perfect “peak season” for natural gas demand. If we continue to see the temperature fluctuate to some degree, that indicates the end of the trend.
Beyond that, I think we have to worry about whether there will be enough industrial demand, as there is a lot of risk of economic stagnation. Inflation seems to be at an all-time high, and this has its place in this market as well. If so, you may be in for a rude awakening. When natural gas started, it was undoubtedly overflowing, and now we can break down the bottom of a huge, triangle, and continue on down. I am currently looking for signs of fatigue and fatigue.
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