Natural Gas Price Prediction – Prices Consolidate After Robust Gains
Natural gas prices eased slightly but remain buoyed not far from a 7-year high. There is one storm in the Gulf of Mexico that has a 40% chance of becoming a tropical storm over the next 48-hours. There is another storm that is just coming off Africa. The weather is expected to remain much warmer than normal for the next two weeks according to a report from the National Oceanic Atmospheric Administration. LNG exports rose in the latest week.
Natural gas prices eased slightly on Friday but rallied 5% for the week. Support is seen near the 10-day moving average at 4.70. Resistance is seen near the 2014 highs at 6.5. Prices are overbought as the fast stochastic prints a reading of 95 and the RSI prints a reading of 79, both above their respective overbought trigger levels. Medium-term momentum is positive as the MACD histogram prints in positive territory with an upward sloping trajectory which points to higher prices.
LNG Exports Rise
U.S. LNG exports increase week over week. Twenty LNG vessels with a combined LNG-carrying capacity of 74 Bcf departed the United States between September 1 and September 8, 2021, according to shipping data provided by the Energy Information Administration.