Natural Gas found support following on prospects of higher demand and lower output. Prices sparked on energy demand amid fierce weather forecasts in the US, as well as expectations of witnessing a supply crunch due to tropical storm Idalia.
Meteorologists forecast that hotter-than-usual weather will persist through early September, prompting investors to anticipate higher consumption.
European Natural Gas Prices gained as Chevron Workers Set Date for Strike Action, ANZ Bank Says. Chevron has been alerted that strikes at its export facility in Australia will begin on Sept. 7. Chevron and the unions representing workers will work through the bargaining process as the deadline approaches. The move could still result in a meaningful impact on the liquefied natural gas market despite Woodside Energy reaching an agreement with workers, as Chevron’s two LNG export plants cover about 6% of global supply, the bank noted.
The threats to supply come as flows from Norway, a top gas supplier in Europe, have slumped to their lowest in more than a year due to seasonal maintenance, ANZ Bank said.
Technical Outlook
Natural gas prices traded in positive territory since morning. September future traded at 221.70, up 0.18%.
On the above chart, prices continued to trade above its crucial support 210.00, coincided with multi week consolidation support, this is indicating for an upside momentum to continue. Unless prices give a break below it.
Traders may go long on every dip towards 215-214.50.
On the downside, crucial support is seen at 210.00 and a break below only will create a probability for correction towards 205-200.00