NATGAS price jumped above another major resistance zone at $7 amid lower output and as global demand for US LNG remains elevated due to the energy crisis exacerbated by Russian aggression on Ukraine.
According to EIA report, US gas supplies increased by 15 billion cubic feet for the week ended April 8. Meanwhile analysts expected an average weekly climb of 10 billion, which pegged the average five-year supply build at 33 billion. Total supplies in storage stand at 1.397 trillion cubic feet, down 439 billion cubic feet from a year ago and 303 billion cubic feet below the five-year average, the government said.
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Create account Try a demo Download mobile app Download mobile appStill operational problems on some pipelines and seasonal maintenance in the New Mexico portion of the Permian Basin and the Northeast Appalachian region affected production output. Additionally weather forecasts indicate that temperature in some parts of the US may decrease this weekend and next week, which may provide additional fuel for the bulls.
NATGAS price jumped to the highest level since November 2008. If current sentiment prevails, next target for buyers is located at $7.60 which coincides with 50.0% Fibonacci retracement of the last downward correction launched in 2008. On the other hand, should sellers regain control, nearest support to watch lies at $6.20. Source: xStation5
