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Natural Gas Price Analysis for January 12, 2018

By:
David Becker
Published: Jan 11, 2018, 19:03 UTC

Natural gas prices surged higher on Thursday climbing more than 5.5%, following the EIA inventory report that showed a larger than expected decline.

Crude Oil

Natural gas prices surged higher on Thursday climbing more than 5.5%, following the EIA inventory report that showed a larger than expected decline. Inventories are at a new 5-year low, but the weather is expected to become much warmer which should help easy inventory tension. Resistance is seen near a downward sloping trend line that comes in near 3.12.  Support is seen near the 10-day moving average at 2.93.

Inventories Decline More than Expected

The EIA reported that working gas in storage was 2,767 Bcf as of Friday, January 5, 2018. This represents a net decrease of 359 Bcf from the previous week. This compares to expectations of a decline of 318 Bcf. Stocks were 415 Bcf less than last year at this time and 382 Bcf below the five-year average of 3,149 Bcf. At 2,767 Bcf, total working gas is within the five-year historical range.

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

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