Forex▼ Bearish
Natural Gas: Supply Ceiling Meets the October Roll
Ample supply is capping natural gas prices, but the shift to the October contract, cooling US weather and potential European import demand could shift the outlook, FXEmpire's Chris said.
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The natural gas market drifted sideways before the open pit session Tuesday as traders waited to roll into the October contract, according to Chris, a proprietary trader and senior analyst at FXEmpire.
He said a shift to the October contract could bring healthier pricing. Traders will adjust their view on demand. The supply overhang has been capping prices for weeks.
Temperatures in the US are starting to decline. That normally lifts heating demand and pushes natural gas prices higher. The seasonal pattern is beginning to assert itself, Chris said.