Natural Gas Stockpiles Rise Less than Expected

Natural Gas Stockpiles Rise Less than Expected

• Natural Gas prices surged 5% on Thursday (15th Aug 2019)
• Inventory was Lower Than Expected
• EIA reported 49 Bcf while the forecast was 55 Bcf
• Natural Gas price prediction, may touch 2.33 in few days

According to the Energy Information Administration (EIA) report, Natural Gas in storage was 2,738 Bcf as of Friday (9^th  August 2019). That represents a net increase of 49 Bcf from the previous week. Expectations were for a 55 Bcf increase in inventories.

Natural Gas prices surged 5% on Thursday (15^th Aug 2019) due to lower than expected build in Inventory, reported by EIA. 

Although MCX exchange was closed on Thursday (15^th Aug 2019) due to India’s Independence Day, it is obvious to open Natural Gas price gap-up today. Prices were taking support in the range between 145-155 and some sign of bullish momentum was forming on the chart in the past few days. As per the technical analysis, MACD is showing a short term bullish momentum and we suggest to buy on any small corrections. However, it will be too early to predict a long term bullishness in price because demand is slow and production is sufficient to fulfill the demand.  So on the higher price, it may face downward pressure but since in coming days, hot weather in the USA is expected to increase the Natural Gas demand for power generation so we are a little bullish for coming days.

As per our chart analysis we are predicting a price up move up to 2.33 and suggesting a buy on a small correction in the natural gas prices. MACD crossover is suggesting a buy signal as you can see in above chart.  Don’t forget to place a Stop-Loss if you are trading for shorter time-frame.