Natural gas futures are trading lower early Wednesday with the market posting an inward movement on the daily chart which usually reflects a lack of investment and future volatility. Basically, it is caused by a combination of a technical attack at $ 2.2685, mixed weather forecast, silver prices and liquefied natural gas demand. However, lower-than-average production and the expectation of a better-than-average government storage report are driving up prices.
At 12:07 GMT, natural gas futures are trading $ 2.630, down $ 0.052 or -1.94%.
According to Natural Gas Intelligence (NGI), spot gas prices were mixed across most of the United States, but major gains on the East Coast continued ahead of a second winter storm that was poised to remove frigid air. spread over the area. Weather models that have been far from bullish, but now anticipate expected volatility for the December balance, have been supportive.
LNG demand remains strong, with U.S. export facilities typically operating near full capacity. NGI data showed that feed gas delivery broke the 11 Bcf over the weekend of December 5-6, and currents had remained close to that level until Tuesday when feed gas fell to 10.7 Bcf.
Short-term weather forecast
According to NatGasWeather for 16 – 22 December, “A winter storm with heavy rain and snow will keep the coast up today and Wednesday with a cold low of 10p to 30s. It is also cool throughout the central and northern US to help strong national demand. A second system will bring rain and snow to the Northwest. A bit of a break with broad heights of 40s to 70s across most of the US is expected this weekend into next week for light demand as well as the volatile corners of the Northwest & East -north. Overall, national demand will moderate to high through Friday, then back to low.
The main downward movement is on the daily chart, but the upward movement is small. This adds to this week’s side price action.
The key range is $ 3.002 to $ 2.368. It has the 50% to 61.8% zone at $ 2.685 to $ 2.760 resistance. This zone halted the rally earlier in the week at $ 2,708.
The small range is $ 2.368 to $ 2.708. Its 50% level at $ 2.538 is a potential first target and down support.
“There is no doubt that weather is the driving force; however, demand for climate-altered supply, which appeared to be spreading sharply between mid and late November, is again very tight, ”said analysts at Mobius.
To view today’s economic events, take a look at our economic calendar.