Natural gas prices eased slightly, as the weather on the east coast is expected to remain warmer than normal for the next 2-weeks. This comes ahead of Thursday inventory report from the Department of energy. Expectations are for inventories to decline by 122 Bcf. This compares to a decline of more than 200 bcf las week. The weather in the west is expected to get much colder, while the mid-west is expected to remain normal. The change to colder in the weather will only take a toll if it continues to move east.
Natural gas prices edged sideways and continues to consolidate in a tight range. Target support is seen near the 2016 lows at 1.61. Resistance to natural gas prices is seen near the 20-day moving average at 1.98. Medium-term momentum is negative as the MACD (moving average convergence divergence) histogram prints in the red with a declining trajectory which points to lower prices. Short term momentum has turned positive as the fast stochastic generated a crossover buy signal.
US LNG Exports Rose
LNG exports increase week over week. Twenty-one liquefied natural gas eight from Sabine Pass; four from Freeport; three from Corpus Christi; and two each from Cove Point, Elba Island, and Cameron with a combined LNG-carrying capacity of 75 Bcf departed the United States between January 23 and January 30, according to shipping data compiled by the EIA.
This article was originally posted on FX Empire
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