Natural Gas Price Prediction – Prices Rebound Ahead of Inventory ReportInventories are expected to rise by 76 Bcf
Natural gas prices rebounded on Wednesday ahead of Thursday’s inventory report from the Department of Energy. Expectations are for a 76 BCF build according to survey provider Estimize. The weather is expected to remain mild, moving from warmer than normal throughout the country over the next 6-10 days, to mild on the coasts and normal in the mid-section during the next 8-14 days. Hurricane Delta is headed for the Gulf of Mexico where it is expected to make landfall as a category 3 or 4 storms, in Louisiana on Friday. Approximately 20% of the US natural gas has now been shut in due to the storm. LNG exports rose in the latest week, slightly increasing demand.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Natural gas prices whipsawed closing higher on Wednesday rising 3.3%, making a lower high and a lower low, which is generally the sign of a downtrend. Resistance is seen near the 10-day moving average at 2.63. Support is seen near the October lows at 2.37. The 10-day moving average recently crossed below the 50-day moving average, which means that a medium-term downtrend is now in place. Momentum is neutral to positive. The RSI (relative strength index) is moving higher bounding from oversold levels. The MACD (moving average convergence divergence) histogram is printing in negative territory with a rising trajectory that points to consolidation.
LNG Exports Rose Week over Week
US LNG exports rose week over week. Fourteen LNG vessels with a combined LNG-carrying capacity of 50 Bcf departed the United States between September 24 and September 30, according to shipping data provided by the Energy Information Administration.