Natural gas prices climb as US weather forecasts get cooler
US natural gas prices (NATGAS) are trading over 3% higher today. New weather forecasts suggest that a period of above-average temperatures in the United States may be heading to a close. New forecasts suggest near-normal temperatures across around half of the contiguous United States, with above-average temperatures expected in the north and below-average temperatures seen in the south-west as well as in Florida. This suggests that natural gas consumption may pick-up and be more aligned with averages for the period, as demand for heating will increase.
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Taking a look at NATGAS chart at H1 interval, we can see that price began to trade sideways after halting an almost-40% downward move launched at the end of October 2023. Price moves have been largely confined to the $2.40-2.60 per MMBTu range since. NATGAS recovered from a false breakout below the lower limit of the range and climbed above the midpoint of the range in the $2.50 area today. A small pullback and retest of the $2.50 area occurred as RSI indicator climbed into overbought territory, but bulls seem to have regained control over the market.
Source: xStation5
