Natural Gas Posts Gains On Monthly Basis

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Natural Gas Posts Gains On Monthly Basis

Natural Gas Posts Gains On Monthly And Quarterly Basis

It appears that Natural Gas has dipped during September's last day, but that's nothing when compared with its gains during the monthly & quarterly timeframes.

After staging an impressive bullish rally, the natural gas is now close to the $3.00 resistance zone, which highlights the impressive demand. Despite all the talks of moving towards non-fossil fuel energy sources, natural gas still remains the favorite fuel of American citizens.

Natural Gas Down By 0.5%

The Natural Gas's November futures contract settled at the price of $2.929, with a 0.5% decline during the last day of September. In number terms, that's a decline of almost 0.016.

On the weekly timeframe, the natural gas contract for November is almost up by 11%. Similarly, natural gas has gained 5.8% in the monthly timeframe. During the Q3, the natural gas gain is around 4.7%.

According to an analyst, the schedules of rebalancing by the funds, as well as the monthly/quarterly reports, are the main reasons behind the natural gas selloff. After all, the last day of September was the final trading session and thus attracted more liquidity than what was normal.

Another factor that triggered the recent sell-off in natural gas is that it is getting close to $3.00. If we look back, it becomes clear that $3.00 is an important level, which is yet another reason for the sell-off.

Overall, that was the third attempt to cross the $3.00 mark, which didn't materialize during September. In January 2023, natural gas touched the $4.40 level (high), but it appears that level is still far from reach.

In the USA, the daily production is already above the 100 bcf mark, which is yet another reason behind the recent price-action of natural gas. The market is experiencing a buildup of natural gas stockpiles, which can attract sellers as well.

Looking ahead, the USA is going through the fall season, and there are forecasts that the weather will get cooler in the next few weeks. Based on this forecast, the heating demand will pick up, which will also allow natural gas to stay bullish.

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