warm weather weighs on prices
Natural gas prices moved lower on Tuesday closing at session lows. This comes as warmer than normal weather is expected to cover most of the United States for the next 6-10 and 8-14 days according to the National Oceanic Atmospheric Administration. US LNG exports decrease week over week, which is further reducing natural gas demand. In the latest week, Baker Hughes, the oil and natural gas service giant reported a decline in 2-natural gas rigs in the latest week.
Natural gas prices moved lower on Tuesday declining 3% and closing at session lows. Prices are poised to test the May contract lows at 1.58, and then the continuation contract lows at 1.51. Resistance on natural gas prices is seen near the 10-day moving average at 1.69. Short term momentum has turned negative as the fast stochastic generated a crossover sell signal. The current reading on the fast stochastic is 14, well below the oversold trigger level of 20 which could foreshadow a correction.
The EIA reports that US LNG exports decrease week over week. Fifteen LNG vessels, seven from Sabine Pass, three from Freeport, two each from Cameron and Corpus Christi, and one from Cove Point, with a combined LNG-carrying capacity of 55 Bcf departed the United States between March 19 and March 25, 2020, according to the EIA.
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.