FxWirePro: Upside correction in Natural gas is likely to continue further

After finding support around $2.5 per MMBtu area twice since February, the price of natural gas has been creeping higher. It is currently trading at 2.78 per MMBtu. The $2.5 per MMBtu area has provided support to the natural gas price six times so far since 2016

Over the past two weeks, the natural gas inventory has started creeping higher in the United States as the regular drawdown period ended with the end of winter. Despite the rise in inventory, we suspect that the price would continue to creep higher and test the $3 area again.

The looming summer demand, especially due to higher uses of air conditioners would be a key determinant of the price going ahead.