NG Natural Gas July futures contract continues declining on recent lower demand. Fundamentals are still bearish: low LNG exports, 4 Bcd vs 9 Bcd in the winter, and cooler weather over North East. The temperature is expected go higher on June 25-28, per NatGasWeather. With economy reopening on June 20-21, EIA weekly report may turn bullish in the 1st week of July.
The chart is oversold; buyers are coming in at $1.60 level. Last week build was 93 bcf. A build below 90 bcf would be a bullish sign. A short-covering rally may happen soon in anticipation of improving demand.
Lower prices are still possible, if LNG exports do not improve, or weather does not prove to be hot enough. Yet, reopening of the economy should boost demand significantly moving into July.
The chart is oversold; buyers are coming in at $1.60 level. Last week build was 93 bcf. A build below 90 bcf would be a bullish sign. A short-covering rally may happen soon in anticipation of improving demand.
Lower prices are still possible, if LNG exports do not improve, or weather does not prove to be hot enough. Yet, reopening of the economy should boost demand significantly moving into July.