Energy

Natural Gas Futures Falling Bear-Side

Posted 05/03/2019 8:51AM CTEric Scoles

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

Natural Gas Jun '19 Daily Chart

Eric Scoles

Eric entered the workforce during the summer of 2007 as an apprentice tradesman just before the big crash and recession which followed. The impact of which strongly inspired his interest in the financial industry and began him as a student of the markets. Eric worked throughout the following years developing strong communication skills and risk management practices in the aviation and marketing industries before ultimately getting licensed and turning his passion into a career as a market strategist with RJO Futures.