Advertisement
Advertisement

Natural Gas Price Prediction – Prices Drop and Fall for the Week

By:
David Becker
Published: Oct 29, 2021, 18:10 UTC

Consumption rises

Natural Gas Price Prediction – Prices Drop and Fall for the Week

Natural gas prices dropped for the second straight trading session down nearly 6% and closing the week in the red down 3%. The weather is expected to be colder than normal throughout the mid-West over the next 6-10 days but then turning milder throughout most of the West Coast and the mid-West. There are no significant tropical disturbances in the Atlantic that are treating to become a tropical cyclone over the next 48-hours.

Technical Analysis

Natural gas prices tumbled 6% after falling 7.5% on Thursday. Prices pushed through support now resistance near the 10-day moving average at 5.48. Short-term momentum reversed and turned negative as the fast stochastic generated a crossover sell signal. This comes after prices were signaled as overbought. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).

Consumption Rose

U.S. natural gas consumption increases week over week, led primarily by an increase in the residential/commercial sector. Total U.S. natural gas demand rose by 4.8% (4.1 Bcf/d) week over week, according to data from the EIA. Average weekly consumption of natural gas rose in all end-use sectors. The largest increase in demand was in the residential and commercial sector, which rose 24.3% as the country transitions into the winter heating season. Though temperatures are falling, the onset of the heating season has been delayed relative to normal weather.

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

Did you find this article useful?

Advertisement