Natural gas prices surged higher on Wednesday ahead of Thursday’s inventory report from the Department of Energy. Expectations are that inventories will rise by 41 Bcf according to Estimize. This follows last weeks build of 36 Bcf. There are two disturbances in the Atlantic, one on the door step of the Caribbean. Neither storm is predicted to become a tropical cyclone during the next 48 hour according to the National Oceanic Atmospheric Administration. The weather is expected to be cooler than normal over the next 8-14 days. LNG exports increased week over week, showing a small uptick in demand.
Natural gas prices surged higher on Wednesday rising 4.5%, and poised to test resistance near the 50-day moving average at 2.34. Short term support is seen near the 10-day moving average at 2.22. Short term momentum has turned positive as the fast stochastic generated a crossover buy signal. The current reading of 23, is just above the oversold trigger level. Medium term momentum is about to turn positive as the MACD (moving average convergence divergence) index is poised to cross above the MACD signal line (the 9-day moving average of the MACD line).
LNG Demand Ticks Higher
LNG (liquefied natural gas) exports increase week over week according to the Energy Information Administration. The agency reports that 10 LNG vessels with a combined LNG-carrying capacity of 37 Bcf departed the United States between July 18 and July 24. One vessel was loading at the Sabine Pass terminal on Wednesday.
This article was originally posted on FX Empire
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