Natural Gas Prices Hit Fresh 13-year High

Key Insights

• Natural gas prices hit a 13-year high.
• The weather is expected to be mixed.
• Natural gas LNG exports slid.

On Tuesday, natural gas prices surged higher but settled off the season’s highs. The weather is expected to be mixed, colder on the West Coast and warmer on the East Coast for the next 2-weeks. LNG exports declined in the latest week, but natural gas arrivals at LNG export terminals continued to remain steady.

U.S. LNG exports decrease by three vessels this week from last week. Twenty-three LNG vessels, nine from Sabine Pass, five from Freeport, four from Corpus Christi, three from Cameron, and one each from Cove Point and Calcasieu Pass, combined LNG-carrying capacity of 84 Bcf departed the United States between April 21 and April 27.

Technical Analysis

On Monday, natural gas prices rose higher, hitting a new 13-year intra-day high. Support is seen near the 20-day moving average at 6.9. Target resistance is seen near the May highs at 8.16. The pattern looks like a cup-and-handle, a continuation pattern that follows the trend.

Medium-term momentum has turned positive. The MACD (moving average convergence divergence) generated a crossover buy signal. The MACD histogram is printing in positive territory with an upward sloping trajectory which points to higher prices. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal.