- Spot natural gas prices (CFDS ON NATURAL GAS) continued to decline during their early trading on Thursday.
- It recorded daily losses up to the moment of writing this report by -1.70%, to settle at $4.748 per million British thermal units.
- This happened after declining during yesterday’s trading by - 6.54%.
US natural gas futures fell to a nine-month low, on expectations of milder weather over the next two weeks that could reduce heating demand.
In addition, gas production has increased by about 7 billion cubic feet per day over the past three days in the 48 southern US states, after falling to 80.4 billion cubic feet per day on Saturday. This is the largest decline in production since the February freeze in 2021. Winter storms over the weekend froze oil and gas wells in Texas, Oklahoma, North Dakota, Pennsylvania, and elsewhere.
Daily US demand from the four largest gas-consuming sectors, residential, commercial, energy, and industrial, hit an all-time high of 148.5 billion cubic feet on Friday.
Elsewhere, pipeline operator data showed an increase in eastbound gas flows on the Yamal-Europe pipeline to Poland from Germany on Thursday morning. Russian gas flows through Ukraine to Slovakia also rose.
Natural Gas Technical Analysis
Technically, the price of natural gas suffers from continued negative pressure due to its trading along a bearish corrective slope line in the short term. This is shown in the attached chart for a period (daily), with the continuation of negative pressure for its trading below the simple moving average for the previous 50-day period, in addition to the presence of negative signals.
Therefore, our expectations indicate a further decline for natural gas during its upcoming trading, as long as the 5.310 resistance remains intact, targeting the 4.200 support level.
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