1-storm is brewing in the Atlantic
Natural Gas prices moved higher on Monday, rebounding 2.72%, as colder than expected weather is expected to cover most of the south for the next 2-weeks. There is one storm in the Atlantic that has a 10% chance of turning into a tropical cyclone but it’s not expected to impact any natural gas infrastructure. Demand rose in the latest week.
Natural gas prices moved higher on Monday and are poised to test the 10-day moving average at 2.80. Support is seen near the November lows at 2.52. The RSI turned higher, reflecting decelerating negative momentum. Medium-term momentum is negative to neutral as the fast stochastic is printing in the red with a rising trajectory which points to consolidation.
Demand rises because of heating demand in buildings. Total U.S. consumption of natural gas rose by 22.8% compared with the previous report week, according to data from the EIA. Natural gas consumed for power generation rose by 2.6% week over week. In the residential and commercial sectors, consumption climbed by 81.9% with temperatures across the Lower 48 states generally averaging between 40 and 60 degrees Fahrenheit. Industrial sector consumption increased by 5.8% week over week.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.