David Becker
Add to Bookmarks

Natural gas prices consolidated and moved slightly lower on Thursday in the wake of the Energy Departments’ inventory report. Expectations are for a 79 Bcf build in stockpiles, according to survey provider Estimize. There is a storm in the Gulf of Mexico which the National Oceanic Atmospheric Administration believes has a 90% chance of forming a tropical cyclone in the next 48-hours. The weather is expected to be mild and slightly warmer on the coast over the next 6-10 and 8-14 days, according to NOAA.

Know where Natural Gas is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.


Natural gas prices moved slightly lower on Thursday bouncing near the 10-day moving average at 3.19. Resistance is seen near the June highs at 3.37. Short-term momentum is negative as the fast stochastic generated a crossover sell signal and moved from overbought to neutral. Medium-term momentum is positive but decelerating as the MACD (moving average convergence divergence) histogram print in the black with a declining trajectory points to consolidation.


 Inventories Rise Less than Expected

Natural gas in storage was 2,427 Bcf as of Friday, June 11, 2021, according to the EIA. This represents a net increase of 16 Bcf from the previous week. Expectations were for a 79 Bcf build. Prices should have moved higher. Stocks were 453 Bcf less than last year at this time and 126 Bcf below the five-year average of 2,553 Bcf. At 2,427 Bcf, total working gas is within the five-year historical range.

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

Trade With A Regulated Broker