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It’s not just the cold weather — here’s what else could make natural gas a buy in 2018

VIDEO1:4401:44
It’s not just the cold weather—here’s what else could make natural gas a buy in 2018

Natural gas plummeted this year, declining nearly 20 percent, but one strategist says a buying opportunity could be afoot.

Larry McDonald of the Bear Traps Report explains why.

• In December, the outlook for natural gas was quite bearish. But this week, as bitter cold spread throughout a portion of the U.S., the beaten-down commodity caught a bid and rose for three straight days.

• This has created somewhat of a reversal in natural gas, and that will likely continue into 2018. This comes as the U.S. exports more natural gas.

• A forecasted cold stretch could buoy prices into January.

• Markets appear to be waking up to expected natural gas inventory drawdowns.