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David Becker
Operator in natural gas industry

Natural gas prices moved higher on Monday, as a tropical storm, Dorian moved into the lower Leeward Islands. The path of the tropical storm is moving toward the United States and is expected to hit the eastern portion of Florida. Any turn toward the west, would bring the tropical storm or potentially hurricane into the Gulf of Mexico, where it could generate damage to natural gas producing installations. There is also an 80% chance that a tropical storm will form in the mid-Atlantic. This storm is unlikely to generate any issue to natural gas installations in the United States.

Technical Analysis

Natural gas prices continued to rebound rising nearly 3% as Tropical storm Dorian was forming. Resistance is seen near the 50-day moving average at 2.22. Support is seen near the 10-day moving average at 2.18. Short term momentum has turned positive as the fast stochastic recently generated a crossover buy signal. The fast stochastic has been whipsawing frequently which is a sign of choppy trade. Medium-term momentum positive to neutral as the MACD (moving average convergence divergence) histogram printing in the black with a declining trajectory which points to a potential crossover sell signal, and at least consolidation.

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LNG Deliveries Increase More than Expected

The EIA reported that US LNG exports increase week over week. They revealed that nine liquefied natural gas vessels, four from Sabine Pass, two each from Cove Point and Corpus Christi, and one from Cameron LNG terminals, with a combined LNG-carrying capacity of 32 Bcf departed the United States between August 15 and August 21. One vessel was loading at the Sabine Pass and one at Corpus Christi terminals on Wednesday. Scheduled maintenance at Sabine Pass LNG on Trains 3 and 4 was completed this week, several days ahead of a typical maintenance cycle at the facility, according to the EIA. Train 2 at Corpus Christi LNG terminal has also returned to full operation.

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