Jun ’19 natural gas futures fell sharply this morning with continued bearish fundamentals but remain within this week’s trading range currently. Natural gas has seen five straight weeks now of larger than expected storage injections. Continuing increases have left folks considering this an early start to the injection season. We have now seen working gas in storage push above last year’s levels for the first time in 10 weeks. Supply is seemingly abundant currently and warm to average weather in most of the US limiting the demand side. Fundamentals consistently favor the bears but with prices as low as they are, you have to wonder if the market has priced the negatives in as low as they will go. A rise in price since the end of April lows suggests a bottom may be in place for now. Near-term technical factors suggest there may be positive price movement. However, with natural gas trading in this week’s long range and fundamentals supporting the bears I’d recommend caution to the bulls with any gains being hard fought.
Natural Gas Jun ’19 Daily Chart