Natural gas prices dip amid warmer weather and lower demand, defying storage trends.
U.S. gas futures fell more than 1 percent on Thursday amid forecasts of warmer weather and weaker-than-expected demand over the next two weeks recently.
Futures for NG1 gas for September delivery on the New York Mercantile Exchange fell 2.9 cents, or about 1.4 percent, to $2.08 per million British thermal units
The drop came despite the previous week’s storage. The house is smaller than usual for this time of year. U.S. The Energy Information Administration (EIA) reported that utilities added 21 billion cubic feet of gas to storage in the week ending August 2.
That was lower than the 26-bcf build analysts forecast in a Reuters poll and compares with an injection of 25 bcf during the same week a year ago and a five-year (2019-2023) average increase of 38 bcf for this time of year.
Even though storage builds have been smaller than average in recent weeks, the amount of gas in storage was still around 15% higher than usual for this time of year.
Technical outlook of natural gas prices
Natural gas prices rebounded over 2% and settled at 180 compared to the previous day’s closing of 176.20.
Since 5 August, prices turned positive and recovered from the low 159.10. Further, On the above chart, a RSI positive cross over is indicated for further upside move. However, prices would need to cross above 182.50 in order to test 186-188.00.
Else, any dip towards 170-168 is likely to attract buying activities.
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Commodity Samachar
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