Natural gas prices continued to consolidate on Wednesday ahead of Thursday inventory report from the Department of Energy. Expectations are for a reduction in stockpiles by 132 Bcf according to survey provider Estimize. The weather is expected to be warmer than normal over the next 6-10 and 8-14 days according to the National Oceanic Atmospheric Administration. LNG exports have declined according to the latest data from the EIA. The spread of the coronavirus has reduced demand from China which has spilled over into US exports.
Natural gas slides 1.3% on Wednesday and are poised to test the February lows at 1.74. Resistance on natural gas is seen near the 10-day moving average at 1.87. Short term momentum has turned negative as the fast stochastic generated a crossover sell signal. The MACD histogram is printing in the black with a sliding trajectory which points to consolidation. The relative strength index moved lower and reflects accelerating negative momentum. The current reading of the RSI is 41, which is in the middle of the neutral range and reflects consolidation.
US LNG Exports Slide as Demand Declines
US LNG exports decrease week over week. Fourteen LNG vessels with a combined LNG-carrying capacity of 49 Bcf departed the United States between February 13 and February 19, according to shipping data compiled the EIA.
This article was originally posted on FX Empire
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