Natural Gas Price Prediction – Prices Slide as Hurricane ETA Becomes Less of a TreatCool-weather is expected to remain in the west
Natural gas prices tumbled on Tuesday dropping more than 5%. The forecast for Hurricane Eta to move back into the Caribbean as opposed to the Gulf of Mexico provide the backdrop for lower prices. The weather is expected to be much colder than normal in the west and much warmer than normal in the east which weighed on heating demand.
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Natural gas prices broke down on Tuesday and found support ahead of an upward sloping trend line that comes in near 3.03. Resistance is seen near the 10-day moving average at 3.21. Medium-term momentum has turned negative as the fast stochastic generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).
Demand Rose in the Latest Week
Demand rose on cooler temperatures and increased heating demand in buildings. Total U.S. consumption of natural gas rose by 7.0% compared with the previous report week, according to data from the EIA. Natural gas consumed for power generation declined by 1.0% week over week. In the residential and commercial sectors, consumption increased by 26.5%, reaching a high of 26.5 Bcf per day.