Natural Gas Price Prediction – Prices Rally as LNG Exports Rise

Natural gas prices moved higher on Monday, testing the mid-December highs. Colder than average weather is expected to cover the west coast of the United States and the planes. Typical weather is expected throughout the East Coast and the south. Inventory levels are back to the average range. According to data from the Department of Energy, China has become the largest importer of LNG during the first 10-months of 2021.

Technical Analysis

On Monday, natural gas prices moved higher, attempting to push above resistance near the mid-December highs at 4.08. Support is seen near the 10-day moving average at 3.83. Prices are overbought as the fast stochastic is printing a reading of 98, above the overbought trigger level of 80. Meduim-term momentum has turned positive as the MACD (moving average convergence divergence) index recently generated a crossover buy signal. This situation occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line).

China Becomes Largest LNG Importer

The EIA reports that China’s imports of liquefied natural gas over the first 10 months of 2021 were the world’s largest, surpassing Japan. Prior to 2021, Japan had been the world’s largest LNG importer for 51 years. From January through October 2021, China’s LNG imports averaged 10.3 billion cubic feet per day a 24% increase over the same period last year. Japan’s LNG imports averaged 9.6 Bcf per day over the same period.