FXEMPIRE
All

Natural Gas Price Fundamental Daily Forecast – Strengthens Over $1.847, Weakens Under $1.829

Traders are looking for this week’s EIA natural gas storage report to show a 112 Bcf withdrawal for the week-ending February 7.
James Hyerczyk

Natural gas futures are edging higher shortly before the regular session opening and the release of the latest government storage report. The market is being underpinned by forecasts calling for cold weather over the short-term. However, what traders are really waiting for are the intermediate and longer-term forecasts since the short-term forecast has already been priced into the market.

At 12:55 GMT, March natural gas futures are trading $1.852, up $0.008 or +0.43%.

On Wednesday, prices were boosted by weather models calling for much chillier temperatures in the United States next week. Spot gas prices also rose as a cold weather system is forecast to drop into the Northern Plains before sweeping across the East later this week. The Natural Gas Intelligence (NGI) National Average jumped 12.0 cents to $1.805.

Daily March Natural Gas

Short-Term Weather Outlook

According to NatGasWeather for February 13-19, “A frigid cold shot will sweep across the Midwest and Northeast the next few days with lows of -20s to 10s for strong demand. Chilly, lows of 30s will also advance deep into the South and Southeast to aid national demand. A mild break will follow across the South and East this weekend into early next week with highs of 50s to 70s returning. However, a colder trending system remains on track to sweep across the central and northern US during the second half of next week for a return to strong national demand. The West will see a mix of mild and cold.

U.S. Energy Information Administration Weekly Storage Report

Traders are looking for this week’s EIA report to show a 112 Bcf withdrawal for the week-ending February 7.

A Bloomberg survey of nine market participants showed a range of withdrawals from 102 Bcf to 112 Bcf, with a median draw of 108 Bcf. A Reuters poll included a much larger pull of 122 Bcf and a median of 110 Bcf, while a Wall Street Journal poll averaged a 109 Bcf draw. NGI’s model projected a withdrawal of 113 Bcf.

Daily Forecast

The main trend is down. However, momentum has shifted to the upside. A trade through $1.906 will change the main trend to up. A trade through $1.753 will signal a resumption of the downtrend.

The short-term range is $1.906 to $1.753. Trader reaction to its 50% to 61.8% retracement zone at $1.829 to $1.847 will determine the direction of the market today.

Look for a bullish tone on a sustained move over $1.847. A downside bias will develop on a sustained move under $1.829.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US