Colder Weather Forecasts Give Natural Gas Prices A Boost
U.S. natural gas futures extended their rally this week after having closed higher for the first time in the last five weeks. The commodity price hit the highest level since the start of this month at $2.944/Btu on Monday amid weather forecasts that showed lower temperatures in the next few weeks.
According to business weather intelligence firms, the big shift in the weather pattern that brought the first snowflakes to the U.S. over the weekend will keep a chill in the air this week too. In the next several weeks, colder weather will lower temperatures and is highly expected to provide support to an already pessimistic natural gas market.
The International Energy Agency (IEA) released its annual World Energy Outlook last week, stating that regardless of uncertainty around renewable energy and the Paris Agreement, natural gas will replace coal to play an important role in the mix of global fuels through to 2040.
Natural Gas Trade suggestion
Buy Stop at 2.935, Take profit at 3.000, Stop loss at 2.900