Natural Gas Prices Ended With Losses

Natural gas prices ended with losses as EIA reports larger-than-expected climb in U.S. supplies. Sentiments also remained weak as cooler than normal weather is forecast to cover most of the east coast of the United States over the next 8-14 days according to the NOAA. Data from the U.S. Energy Information Administration showed that domestic supplies of natural gas rose by 72 billion cubic feet for the week ended June 30.

Total stocks now stand at 2.888 trillion cubic feet, down 285 billion cubic feet from a year ago, but 187 billion cubic feet above the five-year average, the government said. According to natgasweather.com, “Temperatures of upper 80s to 100s will cover much of the country this week for strong national demand as high pressure dominates.

The exception will be over the Ohio Valley and Northeast where weather systems will arrive late this week through the weekend with showers and slightly cooler than normal temperatures. Overall, natural gas demand will be high besides the northeastern US” The forecast at the start of the week called for warmer temperatures for Friday to Monday.

This has been taken out, likely fueling Wednesday’s steep break. This change also changed demand from “increasing to high” to “high besides the northeastern U.S.” The problem with this is that the northeast US is a highly populated area. So lower temperatures equals lower demand. Technically now Naturalgas is getting support at 183.1 and below same could see a test of 181 level, And resistance is now likely to be seen at 189, a move above could see prices testing 192.8.

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Suhani Verma

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