Natural Gas Futures Soar On Supply

Natural gas futures climbed to their highest price in nearly two and a half years ,Thursday, after a government storage report showed a supply decline last week that was greater than normal for this time of year. Meanwhile, weather forecasts continue to project more frigid temperatures later this month. Natural gas for January delivery settled 7.2 cents higher, or 1.7%, to $4.409 a million British thermal units on the New York Mercantile Exchange. Prices rose to their highest level since July 20, 2011 and have gained 27% since in Nov 5. Recently, Natural gas is trading near day low 4.346

Working gas in storage was 3,533 Bcf as of Friday, December 6, 2013, according to EIA estimates. This represents a net decline of 81 Bcf from the previous week. Stocks were 273 Bcf less than last year at this time and 109 Bcf below the 5-year average of 3,642 Bcf. In the East Region, stocks were 155 Bcf below the 5-year average following net withdrawals of 46 Bcf. Stocks in the Producing Region were 41 Bcf above the 5-year average of 1,173 Bcf after a net withdrawal of 9 Bcf. Stocks in the West Region were 6 Bcf above the 5-year average after a net drawdown of 26 Bcf. At 3,533 Bcf, total working gas is within the 5-year historical range.

Natural gas creates on 2 year historical chart a format of inverted head and shoulder as a reversal in a down trend it indicated that natural gas bullish trend will continue on near main support 4.308. You can see more selling pressure level 4.270 and 4.233 with profit booking if natural gas breaks its near crucial support 4.308 and give close in it. Weekly bullish trend 50% retrenchment completes around 4.308. Natural gas fresh upper Bollinger band may start above 4.440. You can see more upside level 4.476 and 4.500 if natural gas crosses its crucial resistance 4.440 and gives close on it. Natural gas may hit 4.270 and 4.233 in short term with profit booking.