⏫NATGAS rebounds nearly 2%

While gas prices in Europe are relatively flat by today's standards (more than €100 below historical peaks near €350/MWh), we are seeing a nearly 2% rebound from an important demand zone in the US.

US gas prices are rebounding ahead of the EIA's gas inventory report. Although inventory levels depended on previous production, US gas production is currently falling to its lowest level in a week, below 97 bcf/d. Gas production is 1.1 bcf/d lower than yesterday, but significantly higher than a year ago. It can be seen that production is now stabilizing around 97 bcf/d. A sizable drop in production is taking place in the Appalachian region, and prolonged technical problems in the area could have a positive impact on prices.

In addition, there is unrest in Europe (though not translating into prices). Prices in Europe slightly above 230 EUR/MWh as Gazprom halts deliveries to Germany again via Nord Stream I. According to Germany's energy minister, supplies may not return, and even if they do resume, a repeat can be expected in the winter. NS1 has only been operating at about 20% of capacity so far.

Today at 3:30 pm BST, an important EIA report on US gas inventories!

Gas is bouncing off the demand zone at $9 MMBTU and the rising trendline. If gas breaks out near 9.7, we will have negated a potential head and shoulders formation. Source: xStation5