Natural Gas Price Prediction – Prices Decline Following Inventory Report

Natural gas prices moved lower on Thursday following a smaller than expected draw in natural gas stockpiles according to a report from the US Department of Energy. The weather is expected to remain warmer than normal for most of the East coast for the next 6-10 day as well as during the next 8-14 days.

[fx-forecasts-cta instrument=natural-gas broker=etoro link=https://ad.doubleclick.net/ddm/clk/483139024;289792995;d disclaimer=75%_of_retail_CFD_investors_lose_money]

Technical Analysis

Natural gas prices moved lower on Thursday following the EIA report on inventories. Prices declined by settled off the lows of the trading session. Resistance is seen near an upward sloping trend line that I sthe breakdown level seen near 2.57. Support is seen near the January lows at 2.41. Medium-term momentum remains negative as the MACD (moving average convergence divergence) histogram prints in negative territory with a declining trajectory which points to lower prices.

[fx-image src=/2021/03/ng-031821.jpg data-zoom-target=https://responsive.fxempire.com/cdn/n/n/_fxempire_/2021/03/ng-031821.jpg originalWidth=1626 ratio=2.17]

[fx-article-ad]Inventories Decline Less than Expected

Natural gas in storage was 1,782 Bcf as of Friday, March 12, 2021, according to the EIA. This represents a net decrease of 11 Bcf from the previous week. Expectations were for a 31 Bcf draw in stockpiles according to survey provider Estimize. Stocks were 253 Bcf less than last year at this time and 93 Bcf below the five-year average of 1,875 Bcf. At 1,782 Bcf, total working gas is within the five-year historical range.