Prices dropped by -0.55%, to settle at $ 8.376 per million British thermal units, after it advanced during yesterday’s trading.
- Spot natural gas prices (CFDS ON NATURAL GAS) stabilized at an increase in recent trading at intraday levels, to record slight daily losses until the moment of writing this report.
- Prices dropped by -0.55%, to settle at $ 8.376 per million British thermal units, after it advanced during yesterday’s trading.
- For the fourth consecutive day, it increased by 0.11%.
US natural gas futures rose to a one-week high on Tuesday, on fears that a rail strike could threaten coal supplies to power plants, forcing generators to burn more gas to produce electricity.
Meanwhile, the White House has drawn up contingency plans that seek to ensure the delivery of critical goods in the event of a shutdown of the US rail system. This was done with the purpose of pressing rail and unions to reach a deal to avoid a business interruption that will affect freight service and passengers.
Natural gas rose in the last year and a half and reached record levels in Europe last month. This happened before Russia decided to stop sending gas via the Nord Stream pipeline to Germany, which supplies a third of Europe’s gas needs. Prices are so high that some analysts expect European energy bills to triple early next year, necessitating government bailouts of potentially hundreds of billions of dollars. This is because natural gas is used for electricity, home heating and industrial production like steelmaking.
Natural Gas Technical Analysis
Technically, the main bullish trend dominates the price movement in the medium and short term. It is also supported by the continuation of its trading above its simple moving average for the previous 50 days, as shown in the attached chart for a (daily) period. It previously reached the over-saturated areas.
Therefore, our expectations indicate more ascent for natural gas during its upcoming trading, as long as the 7.70 support remains intact, to target the first resistance level, which is at 8.85.