Natural Gas Price Prediction – Prices Slipped and Consolidate Despite Strong Consumption

Natural gas prices slid on Monday following a 3.5% rally in the prior week. The weather is expected to be warmer than normal during the next two weeks, according to NOAA. According to NOAA, there are no tropical cyclones expected to form in the Atlantic during the next 48-hours. U.S. natural gas consumption hit record highs in 2020.

Technical Analysis

Natural gas prices moved lower and continue to consolidate unable to take out the highs that were made in April. Prices face some headwinds and will need to take out resistance near 3.13. Support is seen near the 10-day moving average at 3.03. Short-term momentum whipsawed and moved lower as the fast stochastic generated a crossover sell signal. Medium-term momentum is flat as the MACD (moving average convergence divergence) histogram is printing near the zero-index level with a flat trajectory which points to consolidation.

2020 Consumtion hits Record

In 2020, both natural gas consumption by the U.S. electric power sector and natural gas exports reached record highs, despite a 2% annual decline in domestic dry natural gas production. Dry natural gas production doesn’t include natural gas plant liquids . In 2020, NGPL production grew to a record-high 2.7 trillion cubic feet (Tcf), up 7% from 2019.