Energy News Today

Natural Gas Price Prediction – Prices Slip as Demand Falls

Natural gas prices moved lower on Thursday, consolidating the weekly gains of more than 6%. This came despite a decline in demand according to the latest report from the Department of Energy. The weather is expected to be cooler than normal in the south of the US and warmer than normal in the north.

Technical Analysis

Natural gas prices edge lower but continued to trend higher, poised to test resistance near the 50-day moving average at 2.79. Support is seen near the 10-day moving average at 2.56. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index recently generated a crossover buy signal. Prices are overbought. The fast stochastic is printing a reading of 89, above the overbought trigger level of 80, foreshadowing a correction.

Demand Falls

Demand falls across all domestic sectors. Total U.S. consumption of natural gas fell by 2.9% compared with the previous report week, according to data the EIA. Natural gas consumed for power generation climbed by 2.7% week over week. In the residential and commercial sectors, consumption declined by 7.6%. Industrial sector consumption decreased by 0.9% week over week. Natural gas exports to Mexico increased 8.2%. Natural gas deliveries to U.S. liquefied natural gas (were about the same as last week averaging 11.0 Bcf/d.

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2021-01-08 15:03:00

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