Natural Gas Prices Fall Despite Rally in Crude

Natural gas prices eased on Monday after rallying on Friday ahead of the weekend. The weather in the U.S. is expected to be colder than normal throughout the mid-West and South for the next 6-10 days but then moderate. Natural gas in Europe hit an all-time high on Friday, helping buoy LNG exports.

U.S. LNG exports increase by six vessels this week from last week. According to the EIA, twenty-four LNG vessels with a combined LNG-carrying capacity of 92 Bcf departed the United States between February 24 and March 2.

Oil prices surged higher as the realization that Russian oil is off the market continued to buoy prices.

Technical Analysis

Natural gas prices eased slightly on Monday and consolidated after rising by 12% last week. Support near the 10-day moving average at 4.66. Resistance is seen near the February highs at 5.72.

Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Prices are overbought with the fast stochastic printing a reading of 99, above the overbought trigger level of 80. Medium-term momentum is positive. The MACD (moving average convergence divergence) index is printing in positive territory with an upward sloping trajectory which points to higher prices.