Natural Gas Slides but Climbs for the Week

Natural Gas prices moved lower on Friday, closing the week up 7%. The weather is expected to be colder than normal throughout the southeast for the next 6-10 and 8-14 days which should increase heating demand. There is one store in the Atlantic with a 40% chance of turning into a tropical cyclone but, it’s unlikely to impact any natural gas installations. Natural gas supplies rose in the latest week.

Technical Analysis

Natural gas prices moved lower and closed near the session lows, but still notched up gains for the week. Prices are hovering near the 10-day moving average which is seen as resistance near 2.87. Support is seen near the November lows at 2.65 on the January contract. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) generated a crossover buy signal.

Supplies Rose

Natural gas supplies increased in the latest week. Supply rises. The average total supply of natural gas rose by 4.2% compared with the previous report week. Dry natural gas production grew by 2.5% compared with the previous report week and reached a high of 91.6 Bcf/d on November 18, the highest level of production since April. Average net imports from Canada increased by 47.8% from last week, with higher imports at border crossing points in the Midwest.