Natural gas resumes its growth as the winter season begins

After several sell-offs that devastated the natural gas market, bulls got a little respite. It’s related to the official arrival of winter and cold. Traders are divided on how severe the climate will be in the week following Christmas. Therefore, the ambiguity of these forecasts doesn’t allow accurately determining whether an uptrend will take place immediately or later.

Since the end of last week, gas futures have reduced by almost 20%. Analysts explain this fall by weather forecasts predicting widespread warming in the U.S. by next week, along with a frosty weekend.

According to the announcement of Houston-based energy consultancy Gelber & Associates, gas futures prices were revised down on the New York Mercantile Exchange (NYMEX) due to their massive sales. Not only technically but also fundamentally oversold, gas futures are likely to trigger some market rally.

Gelber & Associates analysts expect natural gas prices to remain “insane” and volatile in the upcoming weeks. Gas reserves are projected to fall to 3,000 billion cubic meters over the next ten days.