Natural gas prices moved lower on Monday, removing some of the premium that was incorporated into the price ahead of Hurricane Barry. The storm generated a reduction in production as many drills were shut in, but production will quickly go back to normal as the disruption to installation was very limited and will not effect future production. LNG exports increased week over week ahead of the storm which should help buoy demand
Natural gas prices moved lower on Monday, easing toward support near the 10-day moving average at 2.377. Resistance on natural gas prices is seen near the 50-day moving average at 2.44. Medium term momentum is neutral to positive as the MACD (moving average convergence divergence) histogram is printing in the black with an upward sloping trajectory which points to higher prices. Short term momentum is neutral to negative as the fast stochastic prints near the 50 index level with a slightly declining trajectory.
The EIA reports that US LNG exports increase week over week. Twelve LNG vessels with a combined LNG-carrying capacity of 44 Bcf departed the United States between July 4 and July 10. One vessel was loading at the Sabine Pass terminal on Wednesday. Natural gas feedstock deliveries to US liquefaction facilities set a new record last week, reaching 6.3 billion cubic feet per day Bcf per day on July 4 and July 7, 2019. They averaged 6.1 Bcf per day for the report week, the highest weekly average to date, according to tnhe EIA. Flows to the newly commissioned Cameron Train 1 and Corpus Christi Train 2 increased, indicating that both trains have ramped up feedstock deliveries to full capacity.
This article was originally posted on FX Empire
More From FXEMPIRE:
- GBP/USD Daily Forecast – Pound Tumbles, Flirting With 1.2400 Handle
- Ripple’s XRP Analysis – Recap and Mid-Day Review – 17/07/19
- Strong Data Does Not Interfere With The Dovish CB Policy
- Oil Price Fundamental Daily Forecast – Bearish Tone after US Says Iran Prepared to Negotitate
- Johnson, Brexit and the Pound
- Caution Makes a Comeback as Trump Reminds Global Investors of Tariff Risks