📈Natural Gas soars 9%🚀

⬆New weather reports support NATGAS prices

US natural gas prices jumped over 9% during today's session, the highest in 3 weeks, amid forecasts for cold weather in the near future. Bespoke Weather Services  observed colder changes to the temperature outlook for the eastern half of the US both for the current week and next week, resulting in an increase of 10 gas-weighted degree days (GWDD) overall for the next two weeks. Also supporting prices early Monday was an uptick in liquefied natural gas feed demand resulting from higher flows to the Sabine Pass and Freeport terminals, according to the firm.

The wildcard remains the weather in Europe. Conditions have improved slightly following the panic buying spree earlier in the month. Inventories were about 74% of capacity at mid-October, but they have risen since then because of warmer-than-usual weather.

On the supply side, it seems that investors shrugged off the latest bearish EIA report, which showed an injection of 92 Bcf natural gas into storage for the week ended October 15th, slightly above forecasts of a 90 Bcf build and compared with the five-year average of 69 Bcf. 

Meanwhile the Financial Times reported that LNG export Cheniere Energy sought approval for a new project in Texas as companies anticipate increasing global demand in LNG, specifically from China. 

Despite today's sharp upward move, natural gas prices in the US are still below their near 13-year high of $6.45 reached at the beginning of October, as many analysts believe that the US will have more than enough gas in storage for the winter heating season.

NATGAS price launched today's session  with a bullish price gap, breaking above the major resistance zone at $5.50 which now acts as the nearest support. If current sentiment prevails, upward move may accelerate towards recent high from early October. Source: xStation5