Natural Gas Price Prediction – Prices Dip but are Unchanged for the Week

Natural gas prices moved lower on Friday, unable to pierce through short-term resistance near the 10-day moving average at 2.77. Cooler than normal weather is expected to cover most of the United States for the next 8-14 days, which should reduce cooling demand. This past week, injections where less than expected, and below the 5-year average range. Support is seen near an upward sloping trend line that comes in near 2.68. Prices remain in an uptrend. Momentum is neural as the MACD (moving average convergence divergence) histogram is printing in the red with a flat trajectory which points to consolidation. The fast stochastic, which is a momentum oscillator that measures accelerating and decelerating momentum. moved sideways after pushing out above the oversold level and is currently printing a reading of 24, above the oversold trigger level of 20.

Overall supply remains largely unchanged

Overall supply remains largely unchanged, according to data released by the Department of Energy. The average total supply of natural gas fell by 1% compared with the previous report week. Dry natural gas production decreased by 1% compared with the previous report week. Average net imports from Canada increased by 2% from last week.

Demand is Increasing due to Higher Power But That is Due to Warmer Weather

Overall demand increases on higher power burn. Total U.S. consumption of natural gas rose by 4% compared with the previous report week, according to data from the EIA. Natural gas consumed for power generation climbed by 9% week over week. Industrial sector consumption decreased by 1% week over week. In the residential and commercial sectors, consumption declined by 6%. Natural gas exports to Mexico decreased 3%.

U.S. LNG exports increase week over week

U.S. LNG exports increase week over week. Six LNG vessels, combined LNG-carrying capacity 21.7 billion cubic feet per departed the United States from July 12 through July 18, all from the Sabine Pass liquefaction terminal.