Natural Gas Price Prediction – Prices Consolidate Ahead of Inventory Report

Natural gas prices were nearly unchanged for the 3^rd consecutive trading session on Wednesday, ahead of Thursday’s inventory report from the Department of Energy. Expectations are for a 107 Bcf draw in stockpiles according to survey provider Estimize. Monthly LNG exports hit a fresh record in November, according to the EIA. According to NOAA, the weather is expected to be warmer than normal throughout most of the United States.

Technical Analysis

Natural Gas prices consolidated on Wednesday running up against resistance near a downward sloping trend line that comes in near 2.69. Support is seen near the December lows at 2.40. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The MACD histogram is printing in positive territory with an upward sloping trajectory which points to higher prices.

LNG Exports Rise

The November estimated LNG exports surpassed the previous record set in January 2020. In the December 2020 Short-Term Energy Outlook, the U.S. Energy Information Administration (EIA) estimated that November U.S. LNG exports reached