- Spot natural gas prices (CFDS ON NATURAL GAS) rose in early trading on Monday, to achieve daily gains until the moment of writing this report, by 5.75%.
- It settled at a price of $5.920 per million British thermal units, after declining during trading on Friday by -3.75. %.
- During the past week, the price declined because of volatile trading, recording losses by -6.64%.
US natural gas futures fell about 6% on Friday, in what was already a very volatile week on expectations of lower energy demand.
Traders are also focusing on uncorroborated rumors that the Freeport LNG export plant in Texas may not return until December. But with gas prices in Europe down about 13%, economists pointed out that rumors about Freeport were not necessarily the cause of the recent price drop in the United States. The delay in start-up in Freeport is supposed to cause global gas prices to rise.
Sources familiar with Freeport LNG's files with federal safety regulators told Reuters late Thursday that Freeport LNG has not yet submitted a request to resume service with the Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA).
Meanwhile, eastbound gas flows through the Yamal-Europe pipeline to Poland from Germany rose on Monday morning while Russian supplies to Europe via Ukraine remained stable.
Natural Gas Technical Analysis
Technically, the bearish corrective trend dominates in the short term, with it being affected by the breach of a major bullish slope line earlier in the medium term, as shown in the attached chart for a (daily) period. The market is very saturated with buying operations, exaggerated compared to the price movement, which doubles the negative pressures on its upcoming trades.
Therefore, our expectations suggest a decline in natural gas during its upcoming trading, as long as the 6.412 resistance remains intact, to target the pivotal 5.310 support level in preparation to break it.
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