Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0789
    -0.0005 (-0.04%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2613
    -0.0010 (-0.08%)
     
  • USD/JPY

    151.3310
    -0.0410 (-0.03%)
     
  • Bitcoin USD

    70,167.84
    -667.05 (-0.94%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,369.44
    +201.37 (+0.50%)
     

Natural Gas Price Prediction – Prices Ease Ahead of Inventory Data

Natural gas prices moved lower on Wednesday ahead of Thursday inventory report from the Department of Energy. Expectations are for inventories to decline by 3 Bcf. This follows at 9 Bcf draw in inventories in the prior week. The weather is expected to remain warmer than normal for the next 2-weeks according to the National Oceanic Atmospheric Administration. Demand is higher driven by electricity demand.

Technical Analysis

Natural gas prices edged lower with resistance near the 10-day moving average at 1.68. Support is seen near the March lows at 1.55. Short term momentum has turned negative as the fast stochastic generated a crossover sell signal. The MACD (moving average convergence divergence) histogram is printing in the red with a flat trajectory that points to consolidation. Prices are trading sideways looking for an impetus following a huge decline in short positions.

Demand Rises

Demand rises, driven by gains in the power sector. According to the EIA, total U.S. consumption of natural gas rose by 3% compared with the previous report week. Natural gas consumed for power generation climbed by 8% week over week in the low natural gas price environment. Industrial sector consumption increased by 1% week over week. In the residential and commercial sectors, consumption declined overall by 1%. Natural gas exports to Mexico increased by 1%.

This article was originally posted on FX Empire

More From FXEMPIRE:

Advertisement