Natural Gas: Another Rollercoaster Ride In The Offing
Satendra Singh | Oct 22, 2021 11:17AM ET
Analysis of natural gas futures movements since Oct. 19 indicates that the current uptrend could continue. Undoubtedly, the natural gas November futures, due to roll over on Oct. 24, could gap up in the first trading session of the upcoming week.
Russian President Putin denied using energy as a weapon to influence the global economy. However, this looks like a part of changing international diplomatic politics as countries attempt to recover from the economic dents caused by COVID-19.
This is exemplified by the steep surge in crude oil and natural gas prices in September and October. It could also be an attempt by economic superpowers to create a monopoly over global trade. Everyone knows that the tariff-trade war in October 2018 resulted in a sharp surge in both natural gas and crude prices at that time.
Despite a growing weekly injection in natural gas stocks and the announcement of warm winters, natural gas futures have shown good strength in the last trading session, ensuring continuity of the current uptrend.
Although the El Nino effect could lead to warm winters, a slight tilt in weather forecast could favor bullish moves in natural gas futures.
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