Natural gas spot prices have been on the rise, recapturing a key trendline, following the EIA's Short-Term Energy Outlook. Where can prices head from here?
Natural Gas Outlook: Colder Weather, Technical Support to Guide Prices Higher? 2021-04-05 04:00:00 Thomas Westwater, Analyst
Natural Gas Forecast – Talking Points
Natural gas’s total loss for March approached 6% following Februarys bullish action
EIA storage level below its 5-year average, opening price up to demand-side sensitivity
Price action sees the heating gas between two key moving averages after selling off
Natural gas prices struggled in March, dropping nearly 6%. The lackluster performance for the heating gas follows a solid performance in February, when prices rose over 8% from the prior month, as colder-than-average weather swept across the United States. A major US storm system in Texas also helped bolster prices. However, March’s performance pressured prices back within January’s trading range.
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Natural Gas Forecast: Technical Breakdown May Accelerate as Fundamentals Wane 2021-03-16 04:30:00 Thomas Westwater, Analyst
Natural Gas Forecast – Talking Points
Natural gas demand may take big hit on warmer-than-average temperature forecast
Seasonal shift in temperature likely to keep pressure on prices from the demand side
200-day Simple Moving Average in focus as trendline break sees prices moving lower
The most recent 8- to 14-day temperature outlook from the National Weather Service’s Climate Prediction Center paints an unfavorable picture for natural gas prices. Forecasted temperatures in the northeastern and western portions of the United States will be above average over the next two weeks. The south will likely be cooler than normal. Overall, the expected warmer weather – especially across the northeastern US – will likely weigh on demand, driving natural gas prices lower.