Natural Gas Price Prediction – Prices Edge Higher Ahead of Inventory Report

Natural gas prices rebounded on Wednesday ahead of Thursday’s inventory report from the Department of Energy. 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 70% 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.

Technical

Natural gas prices rebounded on Wednesday, bouncing near support at the 10-day moving average at 3.18. 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.

Production Rises

U.S. natural gas production tops 93.0 Bcf per day according to the EIA. The average total supply of natural gas rose by 1.2% compared with the previous report week, Natural gas production grew slightly by 0.4% compared with the previous report week to 93.3 Bcf per day. Average net imports from Canada increased by 19.8% compared with the last report week to 4.6 Bcf per day, about 0.5 Bcf per day below the five-year average for this time period.