Natural Gas Price Prediction – Prices Slip ahead of Inventory Report

Natural gas prices moved lower on Wednesday ahead of Thursday’s inventory report from the Department of Energy. Expectations are for a 113 Bcf draw in natural gas stockpiles according to survey provider Estimize. The weather is expected to be warmer than average throughout most US for both the 6-10 and 8-14 day forecasts. Supply also fell in the latest week.

Technical Analysis

Natural gas prices moved lower on Wednesday ahead of Thursday’s inventory report. Prices held above support near a horizontal trend line that comes in near 4.41. Resistance is seen near the 10-day moving average at 2.57. Medium-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Short-term momentum is neutral as the fast stochastic consolidates near the 30-level after whipsawing between buy and sell signals.

Supply Falls

The average total supply of natural gas fell by 0.1% compared with the previous report week. Dry natural gas production grew by 0.5% compared with the previous report week, according to the EIA. Average net imports from Canada decreased by 8.4% from last week, but imports from Canada reached the highest daily level—6.5 Bcf/d on December 16, the day before the Nor’easter—since February 2020.U.S.