Natural Gas Plunges 11%, After 13-Year High.
On April 19, United States natural gas futures dropped over 11% one day after the contract hit its highest level since September 2008.
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On April 19, United States natural gas futures dropped over 11% one day after the contract hit its highest level since September 2008.
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On April 18, natural gas futures surged to above $8 per million British thermal units.
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NBC reports that the May contract has now dropped approximately 13% from that high.
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Since the Russian invasion of Ukraine began in late February, natural gas prices have been rising.
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The contract is up almost 90% for the year and has seen five straight weeks of gains.
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NBC spoke with Matt Maley, chief market strategist at Miller Tabak, who suggested that natural gas would likely see a pullback.
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Maley points out that natural gas was the second-most overbought contract since 2003.
Its RSI chart is now up to levels that have been followed by short-term pullbacks in the past, Matt Maley, chief market strategist at Miller Tabak, via NBC.
We are still bullish on natural gas (and natural gas-related stocks), so we’re not saying that investors should take profits right here, Matt Maley, chief market strategist at Miller Tabak, via NBC.
We are still bullish on natural gas (and natural gas-related stocks), so we’re not saying that investors should take profits right here, Matt Maley, chief market strategist at Miller Tabak, via NBC.
Instead, we [are] merely saying that investors should avoid chasing these assets over the near term, Matt Maley, chief market strategist at Miller Tabak, via NBC.
NBC reports that the April 18 price surge can be attributed to a number of different investor forecasts.
According to NBC, prices were driven by forecasts for lower spring temperatures and record amounts of LNG moving from the U.S. to Europe.
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According to NBC, prices were driven by forecasts for lower spring temperatures and record amounts of LNG moving from the U.S. to Europe.
