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Natural Gas: Exhaustion Could Continue, While Hurricane Fever Vanishes

By Satendra SinghCommoditiesSep 16, 2021 01:32AM ET
www.investing.com/analysis/natural-gas-exhaustion-could-continue-while-hurricane-fever-vanishes-200602087
Natural Gas: Exhaustion Could Continue, While Hurricane Fever Vanishes
By Satendra Singh   |  Sep 16, 2021 01:32AM ET
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Natural gas futures surged to a seven-year high yesterday amid growing fear for supply and production as category 1 Hurricane Nicholas entered the Gulf area, after Hurricane Ida, a category 4 Hurricane.

Now, Hurricane Nicholas has turned into a mere tropical depression and passed through Texas, the US Gulf energy companies have been able to double down in their efforts to repair the significant damage caused by Ida.

Nicholas caused minor flooding and power outages in Texas and Louisiana, where some refineries remained offline in the wake of Ida, which kept a large portion of the US Gulf offshore oil and gas output shut.

Natural gas futures rallied until Wednesday, but after testing a seven-year high at $5.644 found a selling spree which pushed the futures towards $5.309. Some bullish attempts may be seen today until the announcement of weekly inventory, which could define the directional move for futures.

The expected level of weekly injection could be more than the forecast level of 76 Bcf. If it remains a little lower natural gas futures could find one more bullish attempt, but the resistance could be felt at $5.548. Undoubtedly, the weekly closing level will define the further directional move, but the restoration of supply and production could continue to attract big bears as the current rally was not demand-driven. And the bears could hit their target at $4.817 if natural gas futures are not able to hold major support at 4.888.

Natural Gas Futures Weekly Chart
Natural Gas Futures Weekly Chart

Natural Gas Futures Daily Chart
Natural Gas Futures Daily Chart


Disclaimer: The author of this analysis does not have any position in Natural Gas futures. Readers are advised to take any position at their own risk; as Natural Gas is one of the most liquid commodities of the world. 

Natural Gas: Exhaustion Could Continue, While Hurricane Fever Vanishes
 

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Natural Gas: Exhaustion Could Continue, While Hurricane Fever Vanishes

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Comments (3)
Gábor Halász
Gábor Halász Sep 17, 2021 12:34AM ET
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Get out of here manipulator
Abdul Khaliq
Abdul Khaliq Sep 16, 2021 2:36PM ET
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More rig count means production high?? Will it go to 3.5 in future??
Satendra Singh
Satendra Sep 16, 2021 2:36PM ET
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Thanks for your comments.  Definitely it will.  Gravitational fore pullbacks every flying object. Currently, Nat Gas has entered in an overbought territory.  Before inventory announcement, there was a bullish attempt but followed by a quick exhaustion is the confirmation of advent of meltdown.
Praseetha Brailey
Praseetha Brailey Sep 16, 2021 6:08AM ET
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thank you
Satendra Singh
Satendra Sep 16, 2021 6:08AM ET
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Thanks for your precious comments.  Best Wishes!
 
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Disclaimer: This analysis is purely based on the technical observations. I do not have any position in Natural Gas. One can create position in Natural Gas at his/her own risk.
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