Since the beginning of January 2024, the price of natural gas (#GAS) has been steadily following a bearish trend, nearly halving from $3.3 to $1.7!
FreshForex analysts continue to adhere to a short position strategy, and here are several factors influencing the current situation:
Decrease in gas demand during mild weather,
Concerns about excess supply, as the reduction in gas production by companies Chesapeake and EQT and the decrease in gas reserves by 9 billion cubic feet have not yet triggered a market reaction,
Reduction in the gas consumption forecast in the US for 2024, announced by the Department of Energy,
Pause by the Biden administration in implementing new gas projects to expand LNG production in the US.
Have price lows been reached, and is it time to buy, or will the #GAS contract continue to decrease in value?
Since the total gas reserves are 37% above the five-year average and 14% exceed the previous five-year maximum, experts believe that the situation may only change by summer when reserves approach normal levels.
However, a sharp price change may occur suddenly in the case of extreme heat or other unexpected circumstances that contribute to increased demand.
Keep an eye on the market and ignite your #GAS trades with FreshForex under the most favorable conditions – spreads from $1.51 and margin as low as $0.69 for a minimum trade of 0.01 lot!
