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Natural Gas Price Prediction – Prices Ease as LNG Demand Slips

Storms continue to linger but are not treats to infrastructure
David Becker
Offshore Jack Up Rig in The Middle of The Sea

Natural gas prices made a lower high and a lower low closing the session down 0.6%. Prices are likely to hover at the current levels as demand will likely remain subdued during the shoulder season. This will last until either there is a supply disruption, from a storm, or the weather becomes colder than normal. There are three storms that NOAA (National Oceanic Atmospheric Administration) is watching. All three storms are in the Atlantic and none are expected to hit any areas that could cause a natural gas supply disruption.

Technical Analysis

Natural gas prices eased on Tuesday and continue to trade sideways. Resistance near the 10-day moving average at 2.35. Support on natural gas is seen near the October lows at 2.21. Short term momentum has whipsawed turning negative after turning positive. The fast stochastic has now moved out of oversold territory which points to accelerating positive momentum. The sideways movement of the indicator points to consolidation. Medium-term negative momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in the red with a flattening trajectory which points to consolidation.

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Demand for LNG Eased

The EIA reports that US LNG exports decrease week over week. Eleven LNG vessels with a combined LNG-carrying capacity of 40 Bcf departed the United States between September 26 and October 2, according to the Energy Information Administration. Three vessels were loading on Wednesday. According to the Energy Information Administration. LNG capacity has stabilized, and demand has also remain subdued in the wake of the US/China trade dispute.

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