We expect the rise of natural gas to continue during its upcoming trading.
Spot natural gas prices (CFDS ON NATURAL GAS) settled on an increase in its recent trading at intraday levels, to record daily losses until the moment of writing this report, by -1.29%, to settle at the price of $8.157 per million British thermal units. This is after its rise in trading yesterday and for the fifth day of out of 6 sessions, a rate of 4.30%.
Lower production and more expectations for early summer heat sent natural gas futures higher again on Tuesday. July rose 34.1 cents to $8,394.
Maintenance continued to hamper production levels with production estimated at less than 94 billion cubic feet on Tuesday, this was about 1 billion cubic feet lower than Bloomberg’s estimate the day before and well below 97 billion cubic feet last winter.
Countries across Europe are demanding US exports of LNG to offset Russian gas supplies. The continent is trying to accelerate efforts to distance itself from Russian gas to protest the Kremlin’s invasion of Ukraine and to bolster long-term energy security.
Meanwhile, Russian gas producer Gazprom said it was continuing to supply gas to Europe via Ukraine through the Sudga entry point, with volumes seen on Wednesday at 51.6 million cubic meters, up from 49.3 million cubic meters on Tuesday.
Technically, the price continues to rise amid the continued positive pressure of its trading above its simple moving average for the previous 50 days. This is in addition to the influx of positive signals on the relative strength indicators, after reaching oversold areas. The dominance of the main bullish trend in the medium and short term along a slope line, as it is It is shown in the attached chart has the price succeeded in yesterday’s trading of breaching the current resistance level 8.054.
Therefore, we expect the rise of natural gas to continue during its upcoming trading, as long as its stability is above 8.054, to target the pivotal resistance level 8.870.