Natural gas Price Analysis for September 25, 2017

Natural gas prices stabilized on Friday, after tumbling on Thursday following the larger than expected build in natural gas inventories.  Active natural gas rigs continued to climb this week, which could put additional pressure on prices.  Support is seen near an upward sloping trend line near 2.93.  Resistance is seen near the 10-day moving average at 3.03. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal.

Rigs Continued to Climb

The number of active oil and gas rigs in the United States fell this week by 1 rig.  The total oil and gas rig count in the United States now stands at 935 rigs, up 424 rigs from the year prior, with the number of natural gas rigs increasing this week by 4. Canada’s natural gas rigs, are still upwardly mobile, climbing by almost 30 rigs since mid-June. This week, Canada added 10 oil rigs for the week ending September 22 and lost 2 gas rigs.