Crypto Comeback Pro Trading Robot

Natural Gas Prices Expected To Trade Steadily At $3.8 Support Level

The price of a natural gas futures contract for August hovers at $4.015 which is marginally higher than what was recorded earlier this week. On Thursday, natural gas prices rebounded for August since the hot summer season is expected to boost demand for natural gas power.

Due to the hot weather, the use of air conditioners will rise which will lead to an increased energy consumption ultimately. As per forecast by the news bureau Maxar warmer than usual temperature is expected for most parts of the US. It also predicted that the North-Central region would remain the hottest between July 27 and July 31. Temperatures in the Western and Central parts of the US are expected to be higher than normal from August 1 to 5.

On the other hand, EIA’s weekly inventory data was somber for the gasoline prices, showing a bearish trend. In the US the natural gas stocks rose by 49 billion ft3 the week prior thereby surpassing the market’s expectation of 42 billion ft3. In addition, the decline in domestic natural gas consumption had a negative impact on prices. According to data by Bloomberg, US natural gas consumption on Thursday fell by 8.3% year-on-year to 67.1 billion ft3. The Bloomberg statistics showed that natural gas flowing into the US LNG export facility on Thursday was 10.9 billion ft3. This reflects a decrease of 1.5% from last week.

Electricity production in the US has an adverse impact on demand for natural gas demand. According to data from the Edison Electric Institute, the total power generation in the US fell 2.4% year-on-year to 89,603 GWh last week.  However, the total power generation in the US over the 52-week period increased by 0.9% year-on-year to 3,995,676 GWh.

The Bloomberg data further revealed that the lowest natural gas production in the United States on Thursday was 91.252 billion cubic feet. This reflected a 2.4% increase year over year.

The oil industry company Baker Hughes reported last week that the number of active natural gas drilling rigs in the US increased by three rigs. This meant that it reached a 1-1/4-year high of 104 units which was way above the historical low of 68 rigs installed in 2020.

As per the Commitments of Traders report by the CFTC the net short spot of natural gas futures rose to 119,404 contracts from 11,350 contracts. There was a decrease of 4,640 contracts in the hypothetical long positions while the short position witnessed an increase of 6,710 contracts.

There is an expectation that the price of natural gas trade steadily and remain above the key support level of $3.8. The modest resistance on the other hand is predicted to remain between $4.178 and $4.295. According to some analysts, natural gas is probably going to be one of the first markets to roll over in the commodity space.

Previous Article
Next Article

Leave a Reply

Your email address will not be published.

Name Price24H (%)
Bitcoin (BTC)
Ethereum (ETH)
Tether (USDT)
Litecoin (LTC)

Start Trading

Best VPN Deal Of The Year



This website may have financial affiliations with some (not all) of the brands and companies mentioned on this website. The content you are viewing may be sponsored content. Information found on this website does not represent opinions on whether to buy, sell, or hold any investment assets or sign up with any of the services mentioned. Any disputes you may have with brands or companies mentioned on our blog will need to be taken care of directly with the specific brands and companies. The responsibility of our readers who may click links in our content and ultimately sign up for that product or service is their own. Investors must do their own research before investing their money and only do so at their own risk.

Don't Miss Crypto Comeback Pro!

#1 Cryptocurrency Price Prediction Software and Trading Robot
Sign Up

Try Crypto Engine With a Trusted Broker