Natural gas markets have initially pulled back to kick off the trading session on Thursday only to turn around and show signs of strength. At this point, the market continues to focus on the heat that is coming to the western part of the United States and creeping into the middle part of the country as well. Because of this, the demand for natural gas should continue to pick up, and that should provide a list for this market. The fundamental situation continues to favor natural gas, but beyond that, the technical analysis also suggests that we have further to go.
The era of cheap natural gas is over, giving way to an age of far more costly energy that will create ripple effects across the global economy. Natural gas, used to generate electricity and heat homes, was abundant and cheap during much of the last decade amid a boom in supply from the U.S. to Australia. That came crashing to a halt this year as demand drastically outpaced new supply. European gas rates reached a record this week, while deliveries of the liquefied fuel to Asia are near an all-time high for this time of year.
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