Natural Gas Price Fundamental Daily Forecast- Possible Hurricane Threat to Gulf Coast States Developing

Short-covering and position-squaring ahead of Thursday’s U.S. Energy Information Administration’s (EIA) weekly storage report helped boost natural gas prices on Wednesday. Speculative buyers defending the November 10, 2016 main bottom at $2.867 also helped underpin the market.

November Natural Gas futures settled at $2.940, up $0.045 or +1.55%.

Forecast

Looking ahead to Thursday’s U.S. Energy Information Administration’s weekly storage report, traders expect to see a build of about 53 billion cubic feet in the week-ended September 29. That compares with a gain of 58 billion cubic feet in the preceding week, a build of 80 billion a year earlier and a five-year average rise of 91 billion cubic feet.

Natgasweather.com is saying national demand will be moderate to low.

Weather Alert:

It’s not too early to start monitoring a new tropical depression that formed on Wednesday in the western Caribbean Sea. Earlier forecasts show that it could pose a threat to parts of the U.S. Gulf Coast as a strong tropical storm or a low-end hurricane this week-end.

The early forecasts show the storm may travel through the Gulf of Mexico and head directly into Gulf Coast states like parts of Louisiana, Mississippi, Alabama and the Florida panhandle. This is likely to mean oil companies will begin shutting down oil and natural gas platforms if the storm develops and begins to approach these strategic areas.

The major support remains $2.867 with a lot of room to the downside if this price fails.

On the upside, if the hurricane threat intensifies then we could see a short-covering rally into $3.047 to $3.086 over the near-term.