Prices for natural gas broke out and remain on higher trend on Friday. For the session, the price of natural gas was up almost 8% and ran the week around 5.3%. There is one tropical storm in the Atlantic Ocean, but it is not expected to disrupt and disrupt natural gas infrastructure. There is also a disturbance in the Atlantic Ocean off the coast of North Carolina with a 40% chance of becoming a tropical storm. The weather is expected to be cooler then normal in the east and warmer than normal in the west for the next two weeks according to NOAA. Demand for natural gas rose last week due to the power sector.
Technical analysis
Prices for natural gas broke up by almost 8% on Friday. The technical breakout has prices ready to test the height of May in the close of 2.50. Support for natural gas is seen near the 10-day moving average at 2.19. Short-term momentum has turned positive, as the rapid stochastic generated a crossover buy signal. The current reading on the rapid stochastic is 97, well above the overbought trigger level of 80, which could predict a correction.
Question takes place
Demand increases somewhat with gains in the power sector. Total U.S. natural gas consumption increased by 0.5% compared to the previous reporting week, according to EIA data. Feed gas to liquefied natural gas terminals were the biggest contributor to increasing consumption this week, up 14% and increasing from an average of 3.8 Bcf last week to 4.4 Bcf this week. Natural gas consumed for energy generation climbed week over 0.9%.
