Climbing for a fifth consecutive trading session on Monday, natural gas futures could still have more room to move higher, according to technical analysts. However, they warned that the road to a sustained rally could be rocky.
The September New York Mercantile Exchange (Nymex) natural gas futures contract was 4.1 cents higher at around 1 p.m. ET Monday to $2.179/MMBtu. Modest weather support, higher LNG demand, and continued production curbs provided a fundamental backdrop for the gains.
“While still an oversupplied market, August supply/demand remains particularly tight,” EBW Analytics Group senior analyst Eli Rubin said.
