Natural Gas Price Prediction – Prices Rise Climbing 5% for the Week
Natural gas prices rose on Friday, climbing 3% and notching up a robust 5% gain for the week. Cool-weather covers most of the North East following a heavy snow event. Warmer than average weather is expected to cover most of the United States for the next 2-weeks. This scenario should weigh on natural gas demand.
On Friday, natural gas prices rose but could not advance above key resistance. Resistance is seen near the 200-day moving average at 4.00. Support is seen near the 10-day moving average at 3.84. Short-term momentum is positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is positive as the MACD (moving average convergence divergence) histogram is printing in positive territory with an upward sloping trajectory which points to higher prices.
Natural Gas Supply Declines
U.S. total natural gas supply falls week-over-week with a decrease in dry natural gas production. According to data from the EIA, the average total supply of natural gas fell by 1.5% from a week ago. Dry natural gas production decreased by 2.7%, but the decline in total supply was partially offset by average net imports from Canada increasing by 28.5% across the same period.