NATGAS drops 6% as heating season nears end

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Analysts expect the heating season in the United States to end soon, even as temperatures forecasted for the near-term do not deviate much from averages for the current period of the year. On the other hand, average temperatures in this period are usually high enough for demand for heating to drop significantly, and therefore for the end of the heating season. NATGAS is trading almost 6% lower today and tests $2.1 per MMBTu area, erasing more than half of the gains made yesterday when new set of weather forecasts, that pointed to below-average temperatures, was released. Taking a look at NATGAS chart at H4 interval, we can see that the commodity has been trading sideways in a $2.00-2.25 range for some time already.

Source: xStation5

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