Natural Gas Price Prediction – Prices Rise as Barry Picks up MomentumInfrastructure damage could drive prices higher
US Natural gas prices rallied 2% into the close of the session ahead of a weekend that could see infrastructure damage due to Tropical storm Barry. Tropical storm Barry has sustained winds of 65-miles per hour and is expected to become a hurricane hitting the Louisiana coast. Supply was flat this week and demand was slightly lower.
Natural gas prices moved higher as traders continue to be concerned about production as Tropical Storm Barry whirls in the Gulf of Mexico. Resistance is seen near the July high at 2.49. Short term momentum has turned negative as the fast stochastic generate a crossover sell signal in overbought territory. The current reading of 74 is on the upper end of the neutral range having declined from overbought territory on Wednesday.
Supply is flat and Demand is Down
Supply is flat. According to data from the EIA, the average total supply of natural gas remained the same as in the previous report week, averaging 95.7 Bcf per day. Dry natural gas production grew by 1% compared with the previous report week. Average net imports from Canada decreased by 4% from last week. Total demand is down slightly, despite an increase in power burn. Total US consumption of natural gas fell by 1% compared with the previous report week, according to data from the EIA. Natural gas consumed for power generation climbed by 1% week over week. Industrial sector consumption decreased by 5% week over week. In the residential and commercial sectors, consumption declined by 4%. Natural gas exports to Mexico increased 1% and reached a three-week high of 5.5 Bcf/d according to the EIA as the population