David Becker
Add to Bookmarks

Natural gas prices tested lower levels but closed nearly unchanged on Friday. Total drilling rigs in the U.S. rose 6 to 261, 70% lower a year ago, according to a report from Baker Hughes. The weather is expected to be much colder than normal throughout most of the mid-west during the next 2-weeks. There are no tropical cyclones expected to form in the Atlantic Ocean or the Gulf of Mexico over the next 48-hours according to NOAA. LNG exports declined week over week.

Know where Natural Gas is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Technical Analysis

Natural gas prices made a lower low but ended the session only slightly in the red. Support is seen near the 10-day moving average at 2.13. resistance is seen near the 50-day moving average at 2.28. Medium-term negative momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in the red with a rising trajectory which points to consolidation. The RSI (relative strength index) is moving sideways, printing a reading of 50, which is in the middle of the neutral range and points to consolidation.


LNG Exports Decline

The EIA reports that LNG exports decrease week over week. Ten LNG vessels with a combined LNG-carrying capacity of 37 Bcf departed the United States between September 17 and September 23, 2020, according to shipping data from the EIA. The EIA also reports that the average total supply of natural gas fell by 1.2% compared with the previous report week. Dry natural gas production decreased by 0.9% compared with the previous report week. Average net imports from Canada decreased by 10.0% from last week.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker