A year ago today, Natural Gas Futures (/NG) were trading about twice what they are now. Crude Oil Futures (/CL) have also had difficulty retracing to previous higher levels since their fall from last October’s highs, with a strong resistance level in the $59-$60 area. Even unseasonable cold in a large portion of the United States couldn't push up natural gas to the $3 level. Instead, it bounced off a support/resistance level at $2.90 as its MACD saw a bearish crossover yesterday, suggesting weakening momentum.
Both natural gas and crude oil prices have been grappling with a supply glut, and with the U.S./China trade war and slowing global growth, little indication that demand may suddenly increase and help push prices up. In fact, natural gas storage has built supplies for 32 weeks in a row: we'll see later today in the EIA Natural Gas Report if it will be 33.
While bulls may hope for unseasonable cold spells to boost demand, the vast supply could still far outweigh what's needed and depress prices through the rest of the season, or longer still.
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