Natural Gas Price Prediction – Prices Rally on Cold Weather Forecast
Natural gas prices moved higher on Tuesday as colder than normal weather is expected to move into the south-central portions of the United States, increasing heating demand. The weather is also likely to be colder than normal in the midwest. U.S. Production continues to increase, but this has failed to weigh on prices.
Natural gas prices rallied on Tuesday, pushing through trend line resistance and poised to test the late March highs at 2.69. Additional resistance is seen near the 50-day moving average at 2.73. Support is seen near the 10-day moving average at 2.56. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This 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).
U.S. Production Continues to Rise
U.S. production continues to increase. According to data from the EIA, the average total supply of natural gas rose by 0.6% compared with the previous report week. Dry natural gas production grew by 0.5% compared with the previous report week to average 92.3 Bcf per day, which is almost the same level as for the same week last year. Average net imports from Canada increased by 4.1% from last week.