Natural Gas Technical Report for December 9, 2016

Natural gas prices rebounded on Thursday following a report from the Department of Energy on Inventories.  Prices bounded following the report near support near the 10-day moving average at 3.47.  Resistance is seen near the December highs at 3.75.  Colder than normal weather is forecast to cover most of the United States for the next 8-14 days, which should substantially increase natural gas demand.

According to the Energy Information Administration, working gas in storage was 3,953 Bcf as of Friday, December 2, 2016. This represents a net decline of 42 Bcf from the previous week, which was in line with expectations. Stocks were 51 Bcf higher than last year at this time and 254 Bcf above the five-year average of 3,699 Bcf. At 3,953 Bcf, total working gas is above the five-year historical range.