Natural Gas Gains On Supply Issues

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Natural Gas Gains On Supply Issues

Natural Gas (Xng/Usd) Gains 2.5% On Supply Issues

Tuesday marks the 2nd day in a row of XNG/USD's upside as the commodity is now heading towards the $1.90 level up ahead. In the last 5 days, a 20% increase was seen in the gas prices in terms of various gas contacts.

And if we look at the XNG/USD only, it also boasts a 6% upside, which suggests that things are now looking bright for natural commodities.

As for why the XNG/USD is positive, there are a lot of reasons. The first one is the global push towards green energy. Additionally, geopolitical tensions are also on the rise, which is keeping natural gas prices afloat.

However, another factor that has also joined the mix is the production outages seen in Norway and the USA. Together, all of these factors have allowed the Natural Gas prices to turn higher.

What's more interesting is that even the greenback is green, which makes things a little complicated. Normally, an upside in the DXY sends the natural gas lower and vice versa.

At the time of writing this, the trading price of natural gas is $1.89 with eyes set on the $2.00 handle. Over all, it looks like Natural Gas is now trying to recover its price after declining steeply in February. Amidst all of this, a target of $2.00 doesn't seem too far-fetched if any further supply issues arise.

If we look at the targets up ahead, the first one is $2.00, followed by $2.12 and then $2.08. If the gas prices start to trade in this range, then the next target will be $2.27.

But if the bullish rally in the XNG/USD ends, a revisit of $1.65, followed by $1.60 and $1.53, will be the first on the cards.

Given that natural gas is facing supply issues while the demand forecast is toward the upside, it appears that the natural course of action for XNG/USD is towards the upside.

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