Natural Gas Price Prediction – Prices Rally on Warm Weather Forecats

Natural gas prices broke out again following a . More than 90% of natural gas production in the Gulf of Mexico was offline in late August following Hurricane Ida. Hurricane Larry is headed for Bermuda but is unlikely to impact any natural gas installations. The weather is expected to remain warmer than average over the next 2-weeks.

Technical Analysis

Natural gas price broke out and hit a 7-year high t $5.09 and closed near the highs of the day. Support is seen near the 10-day moving average at 5.51. Target resistance is seen near the 2014 highs at 6.5. Prices are overbought. The RSI (relative strength index) is printing a reading of 82, above the overbought trigger level of 70, which could foreshadow a correction. Medium-term momentum is positive as the MACD (moving average convergence divergence) histogram is printing in positive territory with an upward sloping trajectory which points to higher prices.

Natural gas in storage was 2,923 Bcf as of Friday, September 3, 2021, according to the EIA. This represents a net increase of 52 Bcf from the previous week. Stocks were 592 Bcf less than last year at this time and 235 Bcf below the five-year average of 3,158 Bcf. At 2,923 Bcf, total working gas is within the five-year historical range.