Natural Gas Price Analysis for September 29, 2017

Natural gas prices continued to whipsawed, and closed lower on the session despite a smaller than expected draw reported by the Energy Information Administration.  Prices are rangebound capped near the September highs at 3.20, and floored near support at the September lows at 2.96. Momentum is neutral as the MACD (moving average convergence divergence) index prints in the red with a flat trajectory which reflects consolidation.

Storage Drew Less than Expected

The EIA reported that working gas in storage was 3,466 Bcf as of Friday, September 22, 2017. This represents a net increase of 58 Bcf from the previous week, compared to expectations of a rise of 66Bcf.. Stocks were 127 Bcf less than last year at this time and 41 Bcf above the five-year average of 3,425 Bcf. At 3,466 Bcf, total working gas is within the five-year historical range.