Natural Gas Price Analysis for July 24, 2017

Natural gas prices moved lower on Friday despite a larger than expected draw in inventories reported on Thursday by the Department of Energy. Prices dipped toward support near the 10-day moving average at 3.01.  Resistance is seen near the July highs at 3.11. Positive momentum is decelerating as the MACD (moving average convergence divergence) histogram prints in the black with a declining trajectory which points to consolidation.

Inventories Rose Less Than Expected

Natural gas inventories rose less than expected. According to the EIA, working gas in storage was 2,973 Bcf as of Friday, July 14, 2017. This represents a net increase of 28 Bcf from the previous week, compared to expectations of a rise of 32 Bcf.. Stocks were 299 Bcf less than last year at this time and 141 Bcf above the five-year average of 2,832 Bcf. At 2,973 Bcf, total working gas is within the five-year historical range.