What Factors Could Affect Natural Gas Prices In June?
2022.05.30 11:01
Since the uptrend began on Mar. 15, 2022, the natural gas prices have gone through a plethora of new forces which define the price movements. Now, weather-generated and seasonal moves have taken the back seat. Undoubtedly, natural gas has just hit a new peak on May 26 at $9.432.
Natural gas prices could remain strong on Sunday. The German Economic Minister Robert Habeck expressed fears that the European Union’s unity was “starting to crumble” ahead of a summit to discuss an oil embargo against Russia and a plan to cut Russian energy dependence.
Europe was importing record volumes of liquefied natural gas from its top supplier Russia which has been disrupted since the Ukraine crisis. EU leaders will meet on Monday and Tuesday to discuss a new sanctions package against Russia, including the energy embargo and a program aiming to speed up ending dependence on fossil fuels, including Russian gas.
On the other hand, storage phobia could keep the natural gas prices on the higher side as the buyers are increasing stockpiles ahead of winter, underpinning Asian spot LNG prices at nearly three times the May 2021 levels, unusually high for a low-demand season in the second quarter.
Natural gas futures daily chart.
On the daily chart, natural gas has constantly maintained an uptrend since Mar. 15, which has defined a trading range in an uptrend channel, as explained in my video. Undoubtedly the trading range has extended because of increased price volatility during this month.
The price movements by the natural gas since Mar. 15, 2022, will be the best guide for the natural gas traders in June as the bulls eye $10 in the short term whereas the bears are present in thick numbers above $10.648.
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