Natural Gas Price Prediction – Prices Rise as a New Storm Enters the Caribbean
Natural gas prices moved higher on Friday rising 1.45%. The December contract settled at an all-time closing high. US Natural Gas Rig Count is at a current level of 72, down from 73. last week and down from 137.00 one year ago. This is a change of -1.36% from last week and -46.72% from one year ago. Supply for the week was down slightly. There is another storm entering the Caribbean with a 70% change of becoming a tropical cyclone in the next 48-hours according to NOAA. The weather is expected to be warmer than normal over the next 6-10 days and then turning cooler especially on the west coast and northern plains during the subsequent 8-14 days.
Technical Analysis
Natural gas prices moved higher on Friday with the December contract closing at an all-time high. Support is seen near the 10-day moving average near 3.28. Resistance is seen near the weekly highs in January 2018 at 3.72. Short-term momentum is positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is also positive as the MACD (moving average convergence divergences index generated a crossover buy signal.
Supply Edges Lower
Supply edged lower according to the EIA. the average total supply of natural gas fell by 0.1% compared with the previous report week. Dry natural gas production decreased by 1.3% compared with the previous report week. Average net imports from Canada averaged 4.6 Bcf/d during the report week, an increase of 31.9% from last week.
This article was originally posted on FX Empire
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