Natural Gas Shifts Downward Ahead of EIA Inventory Report
Natural gas costs broke down through the contract lows and continue to fall following a report that showed that hotter than normal climate is expected to cover a lot of the east coast for the next 8-14 days.
This comes ahead of Friday’s inventory report from the Energy Information Administration (EIA), which is predicted to show that inventories descended by 83 Bcf following a survey provider Estimize. This follows last week’s 107 Bcf draw, which was larger than anticipated.
The warm weather during the heart of the cooling demand season is putting a restraint on prices to fall in drilling practice. The EIA reported that LNG exports elevated week over week.
Natural gas fell 2.6% on Thursday, January 2, ahead of Friday’s inventory report. Prices pushed through the December continuation contract lows at 2.15, which is now seen as brief period resistance. Additional cover is seen near the 10-day moving average of near 2.23.
A long term trend line will see support on natural gas costs on a weekly chart that comes near 2.07 weekly momentum has now turned negative as the MACD index generated a crossover sell signal.
This occurs because the MACD index crosses below the MACD sign line.
The MACD histogram is now red with a downward slope, which points to lower prices.
The EIA reported that LNG exports increase week over week. Seventeen LNG vessels with a combined LNG-carrying capability of 59 Bcf departed the United States between December 12 and December 18.
Three vessels had been loading on Wednesday. Elba Island shipped its first LNG export freight on December 13.