Natural Gas Plunges 11% After 13-Year High

Natural Gas Plunges 11%, After 13-Year High.
On April 19, United States natural gas futures
dropped over 11% one day after the contract
hit its highest level since September 2008. .
On April 19, United States natural gas futures
dropped over 11% one day after the contract
hit its highest level since September 2008. .
On April 18, natural gas futures surged
to above $8 per million British thermal units. .
NBC reports that the May contract has
now dropped approximately 13% from that high. .
Since the Russian invasion
of Ukraine began in late February,
natural gas prices have been rising. .
The contract is up almost 90% for the year
and has seen five straight weeks of gains. .
NBC spoke with Matt Maley, chief market
strategist at Miller Tabak, who suggested
that natural gas would likely see a pullback. .
Maley points out that natural gas was the second-most overbought contract since 2003.
Its RSI chart is now up to levels
that have been followed by
short-term pullbacks in the past, Matt Maley, chief market strategist at Miller Tabak, via NBC.
We are still bullish on natural gas
(and natural gas-related stocks),
so we’re not saying that investors
should take profits right here, Matt Maley, chief market strategist at Miller Tabak, via NBC.
We are still bullish on natural gas
(and natural gas-related stocks),
so we’re not saying that investors
should take profits right here, Matt Maley, chief market strategist at Miller Tabak, via NBC.
Instead, we [are] merely saying
that investors should avoid chasing
these assets over the near term, Matt Maley, chief market strategist at Miller Tabak, via NBC.
NBC reports that the April 18
price surge can be attributed to
a number of different investor forecasts.
According to NBC, prices were driven by
forecasts for lower spring temperatures and record
amounts of LNG moving from the U.S. to Europe. .
According to NBC, prices were driven by
forecasts for lower spring temperatures and record
amounts of LNG moving from the U.S. to Europe.