NATGAS retreats from recent high 📉

NATGAS prices pulled further away from a 9-week high of $8.20 USD hit in the previous session on a smaller-than-expected draw in inventories last week and concerns whether or not Freeport LNG will be able to restart operations in December as it has not yet submitted a request to restart the export plant. Meanwhile European energy ministers decided to postpone the approval of a proposed gas price cap at €275/MWh to mid-December. European gas prices have been rising this week on the first signs of cold weather and renewed supply concerns. On Tuesday, Gazprom warned it will limit gas transfers via Ukraine after the weekend, while temperatures are expected to drop significantly. On the other hand, temperatures in Europe were above-normal in recent weeks which made it possible to fill gas storage facilities creating a buffer for the winter. As of November 22nd, gas storages in the EU were 94.6% full, the total storage level in Germany was 99.3%.

NATGAS plunged below local support at 7.66 USD which coincides with 50.05 Fibonacci retracement of the upward wave launched in July 2022 and is currently testing the lower limit of the ascending channel. If sellers manage to break lower, downward move may accelerate towards next major support at 7.12 USD. Source: xStation5