FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
43,096,130Confirmed
1,156,521Deaths
31,748,203Recovered
Fetching Location Data…
Advertisement
Advertisement
David Becker

Natural gas prices moved lower on Friday after hitting a higher high earlier in the trading session. This came as tropical storm Laura was downgraded to a tropical depression as it moved inland. The storm hit the Louisiana coast as a category 4, storm, the first storm to make landfall with 150 mile and hour winds. The damage was widespread, but officials do not think there will be permanent damage to any natural gas installations. There are currently two new storms coming across the Atlantic at the same trajectory as Laura. Both disturbances have approximately a 20% chance of becoming a tropical cyclone in the next 48-hours according to NOAA. The weather is expected to remain cooler than normal throughout the mid-west over the next 2-weeks potentially increasing heating demand.

Technical Analysis

Natural gas prices moved lower on Friday but remained above the breakout level. Support is seen near the 10-day moving average at 2.58. Resistance is seen near the August highs at 2.74. Short-term momentum has turned negative as RSI moved from overbought to neutral territory. Medium-term momentum is neutral but turning negative as the MACD (moving average convergence divergence) histogram prints in the black with a declining trajectory which points to consolidation.

Advertisement

Demand in the US Rises Driven by Electricity Generation

Total U.S. consumption of natural gas rose by 0.8% compared with the previous report week, according to data from the EIA. Natural gas consumed for power generation climbed by 1.3% week over week. In the residential and commercial sectors, consumption increased by 0.8%. Industrial sector consumption decreased by 0.2% week over week. Natural gas exports to Mexico increased 8.0%.

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

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US