Natural gas (NATGAS) dives roughly 11% today, most since January 2019. Natural gas prices are falling as investors await the beginning of the heating season. The approaching heating season is associated with natural gas inventories build-up. Moreover, gas mining has remained intact despite recent hurricanes. These days the output has been recovering along with rising inventories (inventories rise more than anticipated). Natural gas inventories rose by 89 billion cubic feet for the week ended September 11 (vs exp. 80 bcf). Previously this figure totalled 70 bcf.
Natural gas prices experience heavy declines, which prolongs recent correction. The seasonality indicates several weeks of “consolidation” followed by price increase amid the beginning of the heating season. One might notice that natural gas became overbought really early this year (compared with previous years). Source: xStation5
