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Natural Gas Fundamental Analysis – August 21, 2015 – Forecast

By:
Barry Norman
Updated: Aug 20, 2015, 11:29 UTC

Analysis and Recommendations: Natural Gas dipped another 19 points ahead of today’s EIA inventory to trade at 2.697. Natural-gas prices held to their

Natural Gas Fundamental Analysis – August 21, 2015 – Forecast

Natural Gas Fundamental Analysis – August 21, 2015 - Forecast
Natural Gas Fundamental Analysis – August 21, 2015 - Forecast
Analysis and Recommendations:

Natural Gas dipped another 19 points ahead of today’s EIA inventory to trade at 2.697. Natural-gas prices held to their recent trading range as near-record production and plateauing summer demand balanced the market. NG closed at a one-month low on Tuesday and barely moved higher from that point.

The mild weather forecast and rising inventory estimates could drag natural gas prices lower. The key support for natural gas prices is seen at $2.60 per MMBtu. Prices hit this mark in June 2015. In contrast, the resistance for natural gas prices is seen at $3 per MMBtu. Prices hit this level in April 2015. The demand from power plants and warm weather could benefit natural gas prices.

The trading range suggests that natural gas prices could fluctuate between $2.60 and $3 per MMBtu in the near term. The estimates from Citigroup project that natural gas prices could average around $2.70 per MMBtu in 2015 and $3 per MMBtu in 2016.

AccuWeather US Forecast Outlook:

A hot dome of high pressure will dominate the southern US with temperatures underneath in the upper 80s to lower 100s, although not as hot as recent days. It will be cool over the NW, Great Lakes, and NE through early Friday before the hot ridge expands north and east through this weekend. This weekend into early next week, a cut off low pressure system will bring showers and slight cooling to the southern US, while the hot ridge shifts northward with upper 80s to lower 90s gaining ground. This will result in HIGH demand for cooling over the much of the coming week.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

WEEKLY

Natural Gas Weekly Update
Release Schedule: Thursday between 2:00 and 2:30 p.m. (Eastern Time)

Weekly Natural Gas Storage Report
Release Schedule: Thursday at 10:30 (Eastern Time) (schedule)

 

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