Natural Gas prices collapse 65% in 4 months

Henry Hub Natural Gas has now reverted down to its 200 week moving average.

This is quite a mean feat.

Readers of my notes will be aware of the significance I have been placing on the gravitational pull of such long term moving averages especially after seeing wickedly bullish parabolic price moves.

You’ll find my notes calling for lower Gas prices in my notes archive.

Weaker Natural Gas prices will continue to have a negative effect on the share price of related utilities and gas companies, while it’s a positive for industry consumers.

I’m still waiting for Gasoline, Diesel (Gasoil), Heating Oil and Crude Oil to perform the same mean reversion back down toward their respective 200 week moving averages.

The Dutch TTF Gas price is nearly there as is the Japan-Korea LNG Price Marker.

If so, transportation costs will become cheaper.

January 6, 2023

by Rob Zdravevski

rob@karriasset.com.au