FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
96,728,720Confirmed
2,068,341Deaths
69,427,759Recovered
Fetching Location Data…
Advertisement
Advertisement
David Becker

 

Natural gas prices edged higher on Wednesday ahead of Thursday inventory report from the Department of Energy. Expectations are for a 14 Bcf build in natural gas stockpiles according to survey provider Estimize. Hurricane ETA is moving back into the Gulf of Mexico. This could generate supply disruptions. There is also another storm that is entering the Caribbean which has a 10% chance of forming a tropical cyclone in the next 48-hours according to NOAA. The weather is expected to be warmer than normal over the next 8-14 days according to NOAA.

Advertisement
Know where Natural Gas is headed? Take advantage now with 

75% of retail CFD investors lose money

Technical Analysis

Natural gas prices whipsawed edge higher on Tuesday, closing slightly higher on the session. Target support is seen near the July lows at 2.65. Resistance is seen near the 10-day moving average at 3.08. The 10-day moving average has crossed below the 50-day moving average which means that a short-term downtrend is now in place. Prices have bounced from nearly oversold as the RSI (relative strength index) is printing a reading of 33, just above the oversold trigger level of 30 and bouncing from 32 on Monday. Momentum is negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices.

Advertisement

Consumption Declines

U.S. consumption of natural gas will average 83.7 billion cubic feet per day in 2020, down 1.7% from 2019 according to the EIA. The decline in total U.S. consumption reflects less heating demand in early 2020, contributing to residential demand in 2020 averaging 13.2 Bcf/d and commercial demand in 2020 averaging 8.8 Bcf/d (down 0.9 Bcf/d from 2019). EIA forecasts industrial consumption will average 22.5 Bcf/d in 2020, down 0.6 Bcf/d from 2019 as a result of reduced manufacturing activity. EIA expects total U.S. natural gas consumption will average 79.4 Bcf/d in 2021, a 5.2% decline from 2020.

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

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US