🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Natural Gas Demand To Remain Low For Week Ahead

Published 05/05/2019, 12:36 AM
Updated 07/09/2023, 06:31 AM
NG
-

Nymex Natural Gas had a volatile week yet Friday’s session closed flat compared to a week before at $2.56. Thursday’s EIA storage report pressed prices significantly with another record build of 123 Bcf in underground working stocks for the week ending April 26th. The refill season started with spectacular builds at 5-year record input and already filled 3 times the amount of the 5-year average for the last month, which bring the stocks already ahead of Summer’s natural increase in demand. The market will face range-bound movements inside the $2.50 – $3.00 for the coming months on conflicting forces and smaller trading volumes. Any new agreement for U.S. LNG exports is facing very competitive pricing from current providers.

The best example is the outcome of the talks taking place between the U.S. and Europe as far as it concerns the Russian gas. So any increase in demand will have to be equalized by its competitive pricing which might not have any major impact after all on the domestic market. We like to sell rallies on signs of weakness, as fundamentals are still bearish for this market on the 2016 lows and the overall sentiment. Daily MACD crossed bullish on Monday and it seems like a shooting star is, before even expected, going to be entirely sold anytime soon on the shorter term charts. Demand will remain low for the week to come on milder weather than normal in most of the Lower 48. Daily, 4hour, 15min MACD and RSI offering precision in our entry decisions. Dollar against majors and U.S. consumer confidence always to be closely monitored.

NATGAUSD

Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instruments. Nothing in this article constitutes investment advice and any recommendations that June be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instruments should be based upon your own analysis and conclusions.

Latest comments

Loading next article…
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.