Natural Gas Price Prediction – Prices Trade Sideways ahead of Inventory Report

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.

 

Technicals

 

 

 

 

 

 

 

 

 

 

 

 

 

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.