Forex▼ Bearish
Natural Gas Holds Near Floor as Traders Eye Weather and Geopolitical Demand
Natural gas futures oscillated near the $2.00 floor as weak demand capped rallies while traders watched for cooler weather and potential European demand due to Middle East tensions, a senior analyst said.
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Natural gas futures held near the $2.00 floor Monday, oscillating in a narrow band as weak demand capped rallies. The market is rolling into the October contract later this week.
Chris, a senior analyst at FXEmpire, said the sideways action is typical before a roll. Temperatures are expected to drift lower later this month, which could boost consumption in the northeastern U.S., the region that burns a large share of the country's gas.
The bigger variable is Europe, Chris said. If the Middle East situation does not ease, European buyers will be forced to import more U.S. liquefied natural gas. That dynamic is not yet priced in. A floor could emerge if European demand materializes ahead of winter, he said.