Commodities and futures broker Carley Garner shared her short-term outlook for natural gas following the biggest price drop since March of 2023. Catch her full take on the commodities and futures landscape and much more in the Action Alerts PLUS investing club.
Full Video Transcript Below:
J.D. Durkin: Now, this week natural gas saw its biggest drop since the month of March, Carley. What is your outlook for natural gas heading into slower summer months. And of course, as a reminder to our members, the club has a position in the Energy Select SPDR Fund.
CARLEY GARNER: In the big picture, $2.00, $2.50, $3.00 natural gas is really cheap. So I'm a long-term bull. But if we're talking about short run, seasonality natural gas tends to weaken over the next several weeks. And that's because going into the summer months, the energy companies basically hoard natural gas and they build up their stockpiles ahead of the air conditioning season. And then they do the same in the winter. So the seasonal up move comes before the natural gas is needed in our homes as opposed to after or during.
So with that in mind, I think that $2.80 is probably a ceiling for natural gas. In the short run, I think we probably sell off a little from there. But I think we're in the process of bottoming. So if we're talking over the next six months to a year, I think these are going to be good opportunities for the upside.
