Natural gas prices surged higher on Monday as Tropical Storm Nicholas which is brewing within the Gulf of Mexico is poised to hit Texas. there’s a second storm that’s entering the Caribbean that has 10% change of forming a tropical cyclone within the next 48-hours. The weather is predicted to stay much warmer than normal for subsequent fortnight , consistent with a report from the National Oceanic Atmospheric Administration. Production declined within the latest week.
Natural gas prices surged on Monday and was up 5.7%. Support is seen near the 10-day moving average at 4.78. Resistance is seen near the 2014 highs at 6.5. Prices are overbought because the fast stochastic prints a reading of 95 and therefore the RSI prints a reading of 79, both above their respective overbought trigger levels. Medium-term momentum is positive because the MACD histogram prints in positive territory with an upward sloping trajectory which points to higher prices.
Supply of gas falls this report week, led by production declines in Texas. consistent with data from the EIA, the typical total supply of gas fell by 1.1% compared with the previous report week. Dry gas production decreased by quite 0.5 Bcf per day, or 0.6% compared with the previous report week, led by declines in North Texas production, which declined on the average 0.3 Bcf per day week over week. Average net imports from Canada decreased by 11.0% from last week, as flows from Eastern Canada to the Midwest reversed course.
