natural gas

natural gas

Monday, March 7, 2016

Natural Gas Corner - Seasonal Price Trend Update

The bearish news in the natural gas market continues to weigh on prices as the spot April 16 contract last week bottomed out at a new 18-year low at the $1.611/MM Btu level.

Seasonally, there tends to be two yearly low for prices, a post-winter low and a post-summer low.

From a timing perspective, the post-winter seasonal low is due soon.  If a low does form, a small summer rally may follow.

What is different about this year in relation to past years is the oversupply of gas on the market both in storage and in new gas from production.  

If a summer rally does form, a final low for the year is expected in late-2016.  The second low historically has been the low price point for the year.


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