Important Price Levels for Natural Gas Futures Next Week


Apr. 13 2018, Updated 8:51 a.m. ET

Natural gas’s implied volatility

On April 12, 2018, natural gas’s implied volatility was 22.5%, just 0.4% more than its 15-day moving average.

Between April 5 and April 12, 2018, natural gas May futures rose 0.4% accompanied by a 7.1% rise in natural gas’s implied volatility. Since September 2017, the two variables have broadly moved together.

Article continues below advertisement

Price forecast

Between April 13 and April 19, 2018, with a 68% probability, natural gas futures could close between $2.62 and $2.76 per MMBtu (per million British thermal units) based on natural gas’s implied volatility of 22.5% and assuming that the prices are normally distributed.

On April 12, natural gas May futures closed at $2.686 per MMBtu. ETFs like the United States Natural Gas ETF (UNG) and the ProShares Ultra Bloomberg Natural Gas (BOIL) are sensitive to natural gas’s moves. Between April 5 and April 12, 2018, natural gas May futures rose 0.4%. UNG rose 0.5%, while BOIL fell 0.1% in this period.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.