Natural Gas Prices: Key 50-Day Moving Average in Focus
Technical Indicators and Market Dynamics
Natural gas prices have shown slight gains as they recover from previous losses. The 50-day moving average at $2.292 stands as a significant indicator for traders. A critical move above $2.482 could shift the prevailing bearish trend, targeting $2.811, while support levels at $2.252 and $2.214 remain vital to watch.
Weather Impact on Demand
Weak demand forecasts, as projected comfortable temperatures dominate much of the U.S., continue to weigh on natural gas prices. HDDs and CDDs reflect less than normal heating needs, causing demand concerns.
Production Insights
Production levels are steady below 100 Bcf/d with feed gas flows stable as demand remains lukewarm. Despite this, the supply-demand balance mitigates surplus growth, aiding price stabilization.
Market Outlook
The near-term market outlook for U.S. natural gas indicates a bearish trend.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.