Natural Gas Price Fundamental Daily Forecast – Traders Looking for Increased Demand This Week

Natural gas prices weakened early in the session before turning higher early Monday. Despite last week’s steep 2.07 percent sell-off, there wasn’t much of a sell-off before prices rebounded to the plus side.

At 0624 GMT, November Natural Gas futures are trading $3.027, up 0.006 or +0.20%. This is up from the $2.995 low.

The turnaround in the market may be attributed to expectations of increased demand this week. According to reports, demand for gas is projected to rise this week on forecasts for stronger cooling demand but start declining in two weeks as the weather turns milder.

Thompson Reuters is projecting U.S. gas consumption will rise to 73.6 billion cubic feet per day this week from 72.9 bcfd the previous week before dropping to 71.4 bcfd during the first week of October, when both heating and cooling demand will be about equal.

Forecast

The daily chart pattern suggests gains could be limited by a resistance zone at $3.055 to $3.086 and supported by a pair of bottoms at $2.957 and $2.954.

Traders are also predicting that utilities added a smaller-than-normal 69 billion cubic feet of gas into storage during the week-ended September 22. That compared with a 49 bcf increase during the same week a year ago and a five-year average rise of 84 bcf for that period.

Natgasweather.com is also predicting that “Weather systems will track across the central and southern U.S. during the middle of the week to end the current warm spell, spreading to the East after.”

“Overall, strong vs normal demand until Tuesday, then near normal as a seasonal Fall pattern sets up.”