💡 Elevated demand drives gas prices upward
Natural gas (NATGAS)-based contracts are gaining more than 5% during Wednesday's session as the disparity between supply and demand for the commodity continues. Despite large gas inventories in the U.S., data for the past few days indicate that the rate of shrinkage is increasing relatively quickly. The supply-demand balance came out below the range of the 5-year average this week, and the demand for gas itself in the context of electricity generation is growing.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appGas production fell sharply this week, although demand for the commodity remains elevated. Source: XTB
The slowdown in production has led, for the first time since January/February of this year, to rally overall inventories against the upper limit of the 5-year historical average. An extension of this trend could lead to concerns that such a sharp reduction in production could bring stocks back to the historical average, disrupting the pro-downturn paradigm that has kept NATGAS under pressure since the beginning of the year. Source: XTB
NATGAS is currently testing a zone of resistance set by the 50- and 100-day exponential moving averages. It is the reaction to these levels that may determine whether we are in for a reversal of the downtrend, or whether the supply side, however, will decide to push NATGAS back below the 2.10 zone. Source: xStation
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
