The price of natural gas for July delivery fell seven cents to $3.87 per million British thermal units Tuesday, as several Stockhouse posters weighed in on factors that may affect the commodity’s price, including the weather.
Bloomberg noted Tuesday that the natural gas price has declined 31% since the end of December, and gas stockpiles have gained an average of 80 billion cubic feet a week since the injection season began in early April.
On the Horizons BetaPro NYMEX Natural Gas Bull Plus ETF Bullboard, Stockhouse member kerbacious said: “The US is expecting a heatwave starting in the weekend going into the following week .if the NG traders want to NG will spin a bit..A couple of better than average inventories to go along with it..???[sic]”
robbie25 replied: “heard that today myself......the heatwave appears to cover most of the US.....personally, I sold on Friday, and I think tommorow's crude inventories will be bearish for crude, pulling NG down even a little bit more. I expect tommorow afternoon will be an excellent entry point[sic].”
And, Rudee noted: “Far too much nat gas in existing supply for a mere heatwave to affect price significantly. You would need a very prolonged heatwave to affect prices right now[sic].”
Meanwhile, on the Claymore Natural Gas Commodity ETF Bullboard on the weekend, as part of a longer post, RagingBull3 said: “…Hot summer, cold winter will not be what pushes gas prices up. It's big business that will make sure that prices go up. Rigs and wells are being shut in[sic]”…