David Becker
Add to Bookmarks
Gas processing industry

Natural gas prices were up slightly on Thursday following the inventory report from the Energy Information Administration. The weather is expected to be warmer than normal during the next two weeks, on the west coast and cooler than normal on the east coast according to NOAA. There are no tropical cyclones expected to form in the Atlantic during the next 48-hours.

Know where Natural Gas is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Technical Analysis

Natural gas prices consolidated, attempting to move higher and closing up on the session. Resistance is seen near the May highs at 3.2. Support is seen near the 10-day moving average at 3.07. Short-term momentum whipsawed and moved higher as the fast stochastic generated a crossover buy signal. Medium-term momentum is flat but turning positive as the MACD (moving average convergence divergence) is poised to generate a crossover buy signal. This occurs when the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line).


Inventories Rose in Line with Expectations

Natural gas in storage was 2,411 Bcf as of Friday, June 4, 2021, according to the EIA. This represents a net increase of 98 Bcf from the previous week. Expectations were for a 98 Bcf build. Stocks were 383 Bcf less than last year at this time and 55 Bcf below the five-year average of 2,466 Bcf. At 2,411 Bcf, total working gas is within the five-year historical range.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker