Spot natural gas prices (CFDS ON NATURAL GAS) rose slightly in early trading on Thursday, to achieve slight daily gains until the moment of writing this report, by 0.20%. It settled at $6.562 per million British thermal units, after declining during yesterday’s trading by - 3.96%.
US natural gas futures fell on Wednesday as expectations of less cold weather than previously feared lowered expectations for heating demand, while strong production levels further weighed on the market.
Analysts say that the near-term temperature outlook is not cool enough to raise any concerns about a widening storage deficit.
Refinitiv said average gas production in the 48 US states rose to 99.6 bcfd in November from 99.4 bcfd in October.
However, US gas futures ended the month higher than 9%/and prices are also up about 90% so far this year, as rising global prices have fueled demand for US exports due to supply disruptions and sanctions related to Russia's invasion of Ukraine.
Meanwhile, Russia's Gazprom said it would ship 42.4 million cubic meters of gas to Europe via Ukraine on Thursday, a volume similar to the volume of recent days.
Natural Gas Technical Outlook
Natural gas declined amid the negative signals in the relative strength indicators. It tried to search for a bullish bottom from which to base it that might help it gain the necessary positive momentum to restore its recovery. It will base its recent trades on the important support level 6.412, in light of the dominance of the main bullish trend in the medium term along the line sloping. This is shown in the attached graph for a (daily) period of time, with continued positive pressure for its trading above its simple moving average for the previous 50-day period.
Therefore, our expectations remain likely to return to the rise of natural gas during its upcoming trading, provided that the support level 6.412 remains stable, to target the resistance level 7.788.
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