Natural Gas Price Prediction – Prices Rebound on Warm Weather Forecast
Natural gas prices moved higher on Monday, as a warm-weather forecast for the next 6-10 days help lift prices. One storm in the Caribbean has a zero chance of becoming a tropical cyclone over the next 48-hours. According to NOAA two additional storms are coming off the coast of Africa with small chances of becoming tropical cyclones. Tropical depression Henri continue to plague the East Coast, but that will have a limited impact on natural gas prices. Annual production of natural gas declined in 2020, according to the EIA.
On Monday, natural gas prices moved higher, closing above resistance, which is now short-term support near the 10-day moving average at 3.93. Target resistance is seen near the August highs at 4.2. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Negative medium-term momentum is decelerating as the MACD (moving average convergence divergence) histogram prints in negative territory with a rising trajectory which points to consolidation.
Production Slides According to the EIA
In 2020, annual natural gas production from oil wells declined in the combined five major U.S. onshore crude oil-producing regions for the first time since 2016. The share of associated gas produced in these five regions declined by 1.5% year over year and averaged 37.7% of natural gas production in the regions.