Natural Gas Price Prediction – Prices Surge 9% Hitting 13-year Highs
- Natural gas prices broke out to fresh highs.
- The weather is expected to be warmer than normal in the South.
- U.S. Natural arriving at LNG terminals continues to remain elevated.
On Monday, natural gas prices surged higher, breaking out to fresh 13-year closing highs. According to the National Oceanic Atmospheric Administration, the weather is expected to be warmer than normal throughout most of the South for the next 6-10 and 8-14 days.
According to the Energy Information Administration, net withdrawals of natural gas from U.S. storage totaled 2,264 billion cubic feet this winter. The volume is the most natural gas withdrawn from storage since the winter of 2017–18 and 10% more than the previous five-year average, which includes data through March 2022.
Natural gas prices surged higher on Monday, rising more than 9%. Support is seen near the 10-day moving average of 8.72.
Short-term momentum remains positive as the fast stochastic generated a crossover buy signal. Prices are overbought as the fast stochastic is printing a reading of 90, above the overbought trigger level of 80.
Medium-term momentum is reversing and trying to turn positive as the MACD (moving average convergence divergence) histogram prints in negative territory with a rising trajectory which points to consolidation.