As the bearish key reversal trading pattern last Thursday caused the price to fall below the $3 per MMBtu level once again, I view any further price declines as another buying opportunity in the natural gas market. Given the recent flow of the energy commodity into storage facilities, it will be difficult to collect enough gas to challenge last year’s record high in inventories or even surpass the four trillion cubic feet level.
Late last December, the price of natural gas rose to the highest level since late 2014 when it traded at $3.9940 per MMBtu. My projection is that we will see a higher level than last year’s highs as the peak winter season approaches and inventories could be the driving force that sends to price to levels above $4. It will be the weather-related demand that ultimately dictates the path of least resistance for the price of natural gas in the months ahead and into the winter months of early 2018. However, the price is now higher than it was last year at this time and a similar trading pattern over the months ahead will reward those who view any price weakness over the coming weeks as a buying opportunity.
I would like to make a snowman in each of: December, January and February this winter (in E. Texas) : homemade "snow ice cream" is good, too. Just add (very cold) vanilla, sugar and evaporated milk!
Since my gas well in Palo Pinto County, TX just came in, hooray!!!! Gas is at $2.80 at the moment. I could use a few fat checks for my investment.