Natural Gas Price Prediction – Prices Slide on Profit Taking as Storms Continue to Brew

Natural gas prices moved lower on Friday following Thursday’s inventory report Department of energy. Tropical Storm Fred was downgraded to a Tropical Depression in the Caribbean. A second storm has come off the coast of Africa that has a 80% chance of becoming a tropical cyclone in the next 48-hours. The weather is expected to be warmer than normal throughout most of the north part of the United States for the next 2-weeks. This should increase cooling demand across most of the northern portion of the United States.

Technical Analysis

On Friday, natural gas prices moved lower and is poised to test support near an upward sloping trend line that comes in neat 3.85. Resistance is seen near the 10-day moving average at 4.05. Short-term momentum turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum turned negative as the A MACD (moving average convergence divergence) index generated a crossover sell signal. This scenario occurs as the MACD (moving average convergence divergence) index generated a crossover sell signal.

Production is Likely to Rise

The EIA expects natural gas production will average 92.9 Bcf per day in the United States during 2H21—up from 91.4 Bcf per day in 1H21 and then rise to 94.9 Bcf per day in 2022, driven by natural gas and crude oil prices, which we expect to remain at levels that will support enough drilling to sustain production growth.