“Natural Gas Futures Contracts Decline During European Trading Amidst Pessimistic Sentiment and Hopes of Increased Demand from China”

The spot prices of natural gas futures contracts witnessed a decline during the European trading period for the morning of the first trading week and month today, Monday, May 1, 2023. Natural gas futures prices fell against the US dollar (XNG / USD) by 2.58 percent, to trade at levels of $ 2.338 per million. British Thermal Units as of the time of writing about 7:38 am GMT. This is for the price to follow a fluctuating sideways trend in light of the conflicting news between the escalation of pessimistic sentiment and the rekindling of fears about the continuation of the banking crisis on the one hand. On the other hand, the positive expectations about increasing the European continent’s ability to import natural gas. With the expectation of an increase in the volume of demand from the Chinese side after the end of the zero Covid policy, it may raise prices again.

technically, Natural gas price is still struggling to breach the strong support levels at USD 2.50. With its breach and stability above, hopes are renewed for the bullish trend to dominate, and for the natural gas price to continue rising, to trade at $2.68, then $2.74, then $3.00. Also, the price still did not close the price gap at $2.282 price levels, which is expected to be closed as soon as gas price loses the positive momentum. Despite the sideways trend that the price is currently witnessing, contract prices are expected to rise in the intraday and short term, but in the event that the bulls are unable to gain the required momentum to breach the $2.50 levels, it is expected that we will see prices trading again near the strong psychological support level at $2.00. It is expected that the range of trading today for natural gas prices will be between the levels of 2.20 and 2.48 USD. Finally, we advise careful trading and follow the rules of capital and risk management.