Natural Gas Price Prediction – Prices Rise Ahead of Inventory Report

Natural gas prices continued to rebound after bouncing off support ahead of Thursday’s inventory report. Expectations are for a 91 Bcf build, according to survey provider Estimize. There is no tropical disturbance active in the Atlantic Ocean over the next 48-hours that is expected to turn into a tropical cyclone. According to NOAA, the weather is expected to remain warmer than normal through most of the mid-West and East Coast for the next 2-weeks. The EIA expects Non-OECD Asia to become the largest importer of natural gas by 2050.

Technical Analysis

Natural gas prices moved higher on Wednesday after bouncing at support and rebounding into the close. Support is seen near the 50-day moving average near 4.90. Resistance is seen near the 10-day moving average at 5.40. Prices are oversold. The fast stochastic is printing a reading of 20, at the oversold trigger level of 20. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal in oversold territory. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices.

The EIA reports in their International Energy Outlook 2021 that non-OECD countries in Asia will collectively become the largest natural gas importers by 2050. In 2020, the countries of OECD Europe were collectively the largest importers of natural gas, followed by Japan and South Korea combined, and then non-OECD Asia, which includes China and India.