Natural Gas Price Analysis for November 24, 2017

Natural gas prices moved lower on Thursday as the EIA reported a smaller than expected draw in inventories. Warmer than normal weather is also forecast to cover most of the U.S. weighing on natural gas prices. Support is seen near the November lows at 2.84. Prices are breaking down as momentum turned negative. The MACD (moving average convergence divergence) index generated a crossover sell signal.  Resistance is seen near the 10-day moving average at 3.06.

Storage Drew Less than Expected

Working gas in storage was 3,726 Bcf as of Friday, November 17, 2017, according to EIA estimates. This represents a net decrease of 46 Bcf from the previous week. Expectations were for a decline of 52 Bcf. Stocks were 319 Bcf less than last year at this time and 121 Bcf below the five-year average of 3,847 Bcf. At 3,726 Bcf, total working gas is within the five-year historical range.