Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. gas futures rally 2% amid bullish chart signals

Published 08/19/2014, 10:03 AM
Updated 08/19/2014, 10:03 AM
Natural gas futures rally amid bullish chart signals

Natural gas futures rally amid bullish chart signals

Investing.com - U.S. natural gas futures rallied sharply on Tuesday, as bullish chart signals prompted investors to reenter the market after last week's heavy losses.

On the New York Mercantile Exchange, natural gas for delivery in September jumped 2%, or 7.7 cents, to trade at $3.868 per million British thermal units during U.S. morning hours.

A day earlier, natural gas prices fell to $3.727, the lowest since July 28, before turning higher to settle at $3.792, up 0.42%, or 1.6 cents.

Futures were likely to find support at $3.727 per million British thermal units, the low from August 18 and resistance at $3.906, the high from August 15.

Nymex natural gas prices tumbled 4.69%, or 18.6 cents, last week, the biggest weekly loss in a month.

However, prices regained strength after prices bounced off key support close to the $3.725-level on Monday, triggering a flurry of short covering.

Updated weather-forecasting models predicted cooler-than normal weather over the next week or so, before warmer weather moves in across much of the Central part of the country over the subsequent six-to-10-days.

Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.

Meanwhile, the U.S. Energy Information Administration said in its weekly report on August 15 that natural gas storage in the U.S. rose by 78 billion cubic feet last week.

The number was below expectations for an increase of 83 billion cubic feet, but higher than the five-year average change for the week of an increase of 45 billion cubic feet.

Injections of gas into storage have surpassed the five-year average for 17 consecutive weeks, alleviating concerns over tightening supplies.

Total U.S. natural gas storage stood at 2.467 trillion cubic feet as of last week, narrowing the deficit to the five-year average to 18.9% from 20.3% a week earlier and down from a record 54.7% at the end of March.

The EIA's next storage report is slated for release on Thursday, August 21, with analysts expecting a build of 82 billion cubic feet for the week ending August 15.

Inventories rose by 58 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 48 billion cubic feet.

Elsewhere on the Nymex, crude oil for delivery in October eased up 0.09%, or 8 cents, to trade at $93.83 a barrel, while heating oil for September delivery tacked on 0.34% to trade at $2.814 per gallon.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.