Natural gas prices closed higher on Tuesday but were initially lower, and unable to remove short-term resistance. According to the National Marine Atmospheric Administration, the weather is expected to be warmer than normal in the next 8-14 days. There is no tropical cyclone activity in the Atlantic or Gulf of Mexico. In the US, April production was the lowest in 8 years.
Natural gas prices rose higher and consolidated at the lower end of the recent range. Prices hover just below resistance near the 10-day moving average at 133. Target support is seen near 126. Resistance is seen near the EMA 100-day moving average near 136. The short-term momentum is negative as the fast stochastic indicated short-term selling. The medium-term speed is positive to neutral as MACD (moving average convergence deviation) is the histogram print in black with a discretized trajectory that indicates consolidation.
In April 2020, natural gas production in the United States decreased by 2.6 billion cubic feet per day, according to the US Energy Information Administration (EIA) monthly natural gas production report. Production of that magnitude typically occurs only in natural disasters such as hurricanes: the decline in natural gas production was the largest monthly decrease since Hurricane Isaac-related shut-ins in August 2012.