Natural Gas Price Analysis for November 17, 2017

Natural gas prices traded sideways and eventually lower, following a larger than expected draw in natural gas inventories reported by the Department of Energy on Thursday.  Inventories are below the 5-year average and should gain traction if the weather turns colder in the U.S. Resistance is seen near the 10-day moving average at 3.13, while support is seen near the 3.05 level which is the top of a gap.

Inventories Dropped More than Expected

Working gas in storage was 3,772 Bcf as of Friday, November 10, 2017, according to EIA estimates. This represents a net decrease of 18 Bcf from the previous week, and compares to expectations that stocks would decline by 14 Bcf. Stocks were 271 Bcf less than last year at this time and 101 Bcf below the five-year average of 3,873 Bcf. At 3,772 Bcf, total working gas is within the five-year historical range.