Natural gas prices rose slightly on Thursday. This was followed by the Energy Information Administration’s Natural Gas Inventory Report. The weather is expected to be milder and warmer than normal for the next 2 weeks, which should reduce heating demand. The storm delta continues to churn in the Gulf of Mexico, which will knock out about 20% of America’s natural gas production. According to NOAA another disturbance is moving away from Africa with a zero percent chance of becoming a tropical cyclone in the next 48 hours.
Natural gas prices were made within a day with low highs and highs indicating indecision. Prices removed resistance which now supports near the 10-day moving average at 189. The resistance is seen near theprevious higher point at 199. The medium-term speed is neutral as MACD (moving average convergence deviation) prints the histogram in red with an increasing trajectory that indicates consolidation.
Inventory grew to expectations
According to the EIA, as of Friday, October 2, 2020, natural gas in storage was 3,831 bcf. This represents a net increase of 75 Bcf from the previous week. According to survey provider Estimate, there were expectations for building 76 BCF. Stocks were 444 bcf higher than the previous year at this time and 394 bcf higher than the five-year average of 3,437 ccf. At 3,831 BCF, the total working gas is above the five-year historical limit