Natural Gas Price Analysis for November 3, 2017

Natural gas prices bounced on Thursday and continue to hover near the 10-day moving average at 2.934. Prices are caught in a tight range, and Thursdays rise in inventories reported by the EIA was slightly higher than expected. Support is seen near and upwards sloping trend line at 2.77, while resistance is seen near a downward sloping trend line near 3.07.

Inventories Rose More than Expected

The Energy Information Administration reported that working gas in storage was 3,775 Bcf as of Friday, October 27, 2017. This represents a net increase of 65 Bcf from the previous week, compared to expectations that stock would increase by 62 Bcf. Stocks were 180 Bcf less than last year at this time and 41 Bcf below the five-year average of 3,816 Bcf. At 3,775 Bcf, total working gas is within the five-year historical range.