⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

Natural Gas Prices Starting to Rally

The price of natural gas is up today by 5.32%, which is a $0.12 change to $2.31, the highest the prices have been in months.

Natural Gas lost 10% yesterday

That is excellent news for an industry that has been struggling with sales lately. The gas industry has suffered from oversupply and low demand as the weather warms up and there is little need for companies and countries to have extra natural gas on hand.

BrokerReviewRegulatorsMin DepositWebsite
🥇Read ReviewASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSAUSD 100Visit Broker >>
🥈Read ReviewFMA, FSAUSD 50Visit Broker >>
🥉Read ReviewFSCA, CySEC, DFSA, FSA, CMAUSD 0Visit Broker >>
4Read ReviewCySEC, MISA, FSCAUSD 5Visit Broker >>
5Read ReviewFCA, CySEC, FSCA, SCBUSD 100Visit Broker >>
6Read ReviewFCA, FINMA, FSA, ASICUSD 0Visit Broker >>
7Read ReviewCySEC, FCA, FSA, FSCA, Labuan FSAUSD 100Visit Broker >>
8Read ReviewCBCS, CySEC, FCA, FSA, FSC, FSCA, CMAUSD 10Visit Broker >>
9Read ReviewASIC, CySEC, FSCA, CMAUSD 100Visit Broker >>
10Read ReviewIFSC, FSCA, ASIC, CySECUSD 1Visit Broker >>

 

The oversupply problem is partly due to calm weather that allowed for gas reserves to build up, with only minor issues on the production side. The occasional gas production facility issue aside, the industry has managed to collect gas smoothly for the most part this year, which has resulted in some of the lowest gas prices in years.

February’s price of $1.60 is as low as the price point has dropped since back in 2020, but now, the price is rallying. The current price is right on par with where the industry was in late January of this year, and it may signal a turning point for the natural gas sector.

Natural gas rates are up about 45% from where they were at the end of March, from which point they have been steadily and steeply increasing.

Will Prices Keep Rising?

Industry analysts say that there is little expectation that the prices will go much further than they are right now, when looking at the next few months. The prices may shoot up in late fall, as the weather cools, but oversupply issues will likely still drive prices down.

Another factor at play that will prevent rising prices is the abundance of energy alternatives. Wind and solar options are growing more common, and their ease of access is making natural gas less necessary. The expectation is that this issue will continue to hamper gas prices and that the current rally may not last long.

 

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
Related Articles