Natural Gas Price Prediction – Prices Slide on Milder Weather Forecast

Natural gas prices moved lower dropping more than 3% as milder weather began to spread across the United States. Storms continue to brew in the Atlantic Ocean and now the Gulf of Mexico. Tropical storms Paulette and Rene are moving east, northeast, but are not expected to hit or impact any natural gas installation in the US. There is a third disturbance coming off the coast of Africa, which has a 50% chance of turning into a tropical cyclone in the next 48-hours according to NOAA. There is also a storm in  the Gulf that has a 20% change of becoming a tropical cyclone.

Technical Analysis

Natural gas prices moved lower and broke down by more than 3%. Support is seen near the 50-day moving average at 2.21. Resistance is seen near the 10-day moving average at 2.52. Medium-term momentum remains negative as the MACD (moving average convergence divergence) histogram is printing in the red with a downward sloping trajectory which points to lower prices. The fast stochastic also broke down reflecting accelerating negative momentum. The current reading on the fast stochastic is 1, below the oversold trigger level of 20 which could foreshadow a correction.

US LNG Exports Were Flat

U.S. LNG exports were unchanged week over week. Six LNG vessels with a combined LNG-carrying capacity of 21 Bcf departed the United States between September 3 and September 9, according to shipping data provided by the EIA.