NATGAS deepens declines

NATGAS fell more than 8.0% during today's session as prospects of warmer weather forecasts over the next two weeks overshadowed news regarding reopening of the Freeport LNG export plant in Texas. Higher temperatures should lower demand for gas, while Freeport terminal is on track to receive about 25 million cubic feet per day (mmcfd) of feed gas. Investors also ignored reports of an explosion at a Russian pipeline which transfers gas to Europe. From technical point of view, NATGAS price broke below key support at $5.72, which now acts as resistance. Currently price is moving towards October 2022 lows at $5.26. If sellers will manage to uphold current momentum, then sell-off may intensify. In this case, next support to watch is $4.75.

NATGAS, H4 interval. Source: xStation5