Spot natural gas prices (CFDS ON NATURAL GAS) fell during their early trading on Tuesday, to incur slight daily losses until the moment of writing this report by -1.33%. It settled at a price of $2.559 per million British thermal units, after a sharp decline during the trading day.
Natural gas futures fell on Monday as weekend weather models sidestepped a huge amount of demand in the 15-day forecast, although demand for liquefied natural gas hit a new high amid the return of operations of a major export facility. April fell by 43.7 cents at $2.572 per million British thermal units, and May futures fell by 41.1 cents to $2.730.
Meanwhile, the European Union plans to launch a tender next month for the joint purchase of natural gas supplies, a first step toward creating a cartel of buyers in an effort to drive down prices, Bloomberg reported on March 7.
Preliminary estimates according to the Vice-President of the European Commission, Maros Sivokovic, show that there is a demand between the 27 member states of the bloc and three neighboring countries to jointly purchase 24 billion cubic meters of gas over the next three years. The European Union expects to sign the first contracts with suppliers in June. June.
Natural Gas Technical Analysis
Technically, the price is declining as the negative pressure continues for its trading below the simple moving average for the previous 50-day period. This was considering the dominance of the main bearish trend in the medium term and along a trend line, as shown in the attached chart for a period of time (daily). In addition to that, we notice the start of negative signals with the relative strength indicators, after reaching highly overbought areas.
Therefore, our expectations indicate a further decline for natural gas during its upcoming trading, especially as long as it stabilizes below 2.748, targeting the psychological support level of 2.00.
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