Natural Gas Price Prediction – Prices soared as working gas storage increased

Key Insights

• Natural gas prices moved higher.
• The weather is expected to be average or above normal throughout most of the U.S.
• Weekly natural gas storage increased from the previous week. 

On Thursday, natural gas prices extended their rebound for the fourth consecutive trading session. According to the National Oceanic Atmospheric Administration, the weather is expected to be warmer than normal or average during the next 6-10 days.

The weather is supposed to be above average for the next 8-14 days throughout most of the United States.

According to the EIA, weekly natural gas storage rose by 85 Bcf from the previous week to 1,732 Bcf. Total working gas in underground storage falls within the five-year range. However, stockpiles of natural have are 358 Bcf less than last year at the same time.

Technical Analysis

On Thursday, natural gas prices sustained upward traction holding near the mid $8 region. Prices might test target resistance near the $9.00 level, the 2022 peak. Short-term momentum is positive as the fast stochastic generated a crossover buy signal.

Medium-term momentum might turn positive but is flat. The MACD (moving average convergence divergence) histogram prints in neutral territory with a rising trajectory, meaning range-bound trade action.