Natural Gas Price Analysis for July 14, 2017

Natural gas prices moved lower on Friday despite a smaller than expected build in natural gas inventories reported by the Department of Energy on Thursday.  Prices attempted to test resistance near a downward sloping trend line at 3.03, but failed and moved lower as the session progressed. Support is seen near the 10-day moving average at 2.95. Momentum is positive as the MACD (moving average convergence divergence) histogram prints in the black with an upward sloping trajectory which points to higher prices.

Inventories Build Less than Expected

The EIA reported that working gas in storage was 2,945 Bcf as of Friday, July 7, 2017. This represents a net increase of 57 Bcf from the previous week, compared to expectations of a 59 Bcf increase. Stocks were 289 Bcf less than last year at this time and 172 Bcf above the five-year average of 2,773 Bcf. At 2,945 Bcf, total working gas is within the five-year historical range.