In a May 30 Barchart article on the U.S. natural gas futures market, I concluded:
Natural gas rallied at the start of the 2024 injection season, likely due to an increased level of speculative shorts. Even though U.S. stocks are at a historically high level, the potential for higher prices will depend on the U.S. and European demand during the upcoming cooling season. Weather conditions are the primary factor determining the path of least resistance of the energy commodity’s price. With open interest remaining elevated, a hot summer could keep the rally going as shorts close or reverse their risk positions.
