Natural gas prices whipsawed testing lower levels and then rebounding to close up 0.5% on the trading session. Natural gas delivering to LNG facilities hit a record in July, which shows that demand for exports continues to rise. Additionally, Natural gas delivered by pipelines to Mexico and to US LNG export facilities reached 10.9 Bcf per day in July and averaged 10.0 Bcf per day in the first seven months of this year, 30% more than in the same period of 2018.
Natural gas prices initially moved lower but bounced on Monday near support at the 10-day moving average at 2.15. Resistance is seen near last weeks highs at 2.27 and then the August highs at 2.33. Medium term momentum is positive as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher prices. Short term momentum is flat as the fast stochastic consolidates, in the middle of the neutral range which reflects consolidation.
LNG Deliveries Hit Record
The EIA reports that natural gas deliveries to US facilities producing liquefied natural gas for export set a monthly record in July 2019, averaging 6.0 billion cubic feet per day which accounts for 7% of the total US dry natural gas production. In the first seven months of 2019, natural gas feedstock deliveries to LNG export facilities have been the fastest growing among all US natural gas consumption sectors. Natural gas delivered by pipelines to Mexico and to US LNG export facilities reached 10.9 Bcf per day in July and averaged 10.0 Bcf per day in the first seven months of this year, 30% more than in the same period of 2018.
This article was originally posted on FX Empire
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