Storms continue to make their way across the Atlantic
Natural gas prices whipsawed making a lower low but closing higher, as storms continue to brew in the Atlantic Ocean. Tropical storms Paulette and Rene are moving east, northeast, but are not expected to hit or impact any natural gas installation in the US. There is a third disturbance coming off the coast of Africa, which has a 50% chance of turning into a tropical cyclone in the next 48-hours according to NOAA. After experiencing a cold snap, the weather throughout the mid-west of the US is expected to become milder over the next 6-10 and 8-14 days according to NOAA.
Natural gas prices whipsawed but finished the session in the black, after moving lower and hitting a fresh low for September. Support is seen near the 50-day moving average at 2.21. Resistance is seen near the 10-day moving average at 2.54. Medium-term momentum remains negative as the MACD (moving average convergence divergence) histogram is printing in the red with a downward sloping trajectory which points to lower prices.
Demand drops driven by declines in power generation and building use. Total U.S. consumption of natural gas fell by 5.4% compared with the previous report week, according to data from the EIA. Natural gas consumed for power generation declined by 7.8% week over week. In the residential and commercial sectors, consumption declined by 5.4%. Industrial sector consumption decreased by 0.5% week over week.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.