Natural Gas Price Analysis for September 15, 2017

Natural gas prices moved higher but closed off session highs, despite a larger than expected build in natural gas inventories reported on Thursday by the Department of Energy.  Prices jumped to 3.10, but closed nearly 0.23% higher, above support near the 10-day moving average at 3.0. Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal.

Inventories Climbed More than Expected

The EIA reported that working gas in storage was 3,311 Bcf as of Friday, September 8, 2017. This represents a net increase of 91 Bcf from the previous week, and compares to expectations of a rise of 85 Bcf. Stocks were 179 Bcf less than last year at this time and 43 Bcf above the five-year average of 3,268 Bcf. At 3,311 Bcf, total working gas is within the five-year historical range.