Natural Gas Price Prediction for July 31, 2017

Natural gas prices were lower on Friday, as cooler than expected weather in the middle of the Uninted States over the next 2-weeks is weighing on natural gas demand. This has been offset by strong demand in California. Prices ran into resistance near the 10-day moving average at 2.98. Support is seen near the weekly lows at 2.88. Momentum is neutral as the MACD (moving average convergence divergence) histogram prints near the zero index level with a flat trajectory which reflects consolidation.

California is Warm

California is on pace to have the warmest July since 2006, following a heat wave at the beginning of the month. From July 6–8, California tied or exceeded daily records going back to 1981 for measured cooling degree days, according to NOAA data. CDD can be used as an indicator of air conditioning requirements or use. Peak electricity generation from natural gas so far in July 2017 was also highest over these same three days