Natural gas futures are trading slightly higher on Wednesday, but are within yesterday’s range. Initial price action suggests investor indecision and imminent volatility. The market was above psychological levels on Tuesday, but there were not enough purchases to sustain the attempted breakout. This suggests that buyers feel that it is too early for the rally, or that there are not enough catalysts to support price increases at this time.
Despite slow trade, the market remains well supported. This means that fast-paced businesses can take another run. They have two options: buy strength and play for a breakout, or buy a dip and hope to be fundamentally supportive.
Short term weather forecast
According to Natgussworth from May 5 to May 11, “The weather system and a series of cool winds with rain and thunder will continue into the Midwest and Northeast during the highs of the 50s and 60s and into the 30s and 40s next week. Cooling is mild.” Demand for Texas and South / Southeast will reach the 80s in the coming days with highs in the 70s, then return to the 80s and 90s later this week. West on the Northwest by 50s Will see a mix of mild conditions with highs in the 70s, but much warmer in the Southwest with highs in the 80s to 90s. Overall, moderate on the rest of the week.
Natural Gas Intelligence (NGI) reported that for Thursday’s EIA storage report, according to Bloomberg’s survey, an average estimate for 66 bcf injections for the week ending April 30 was shown as early as Wednesday. This was based on 10 estimates, ranging from 49 BCF to 76 BCF. . Bespoke Weather Services said it predicted a 71 BCF build.
The market may be limited on Wednesday as traders assess the latest short-term weather patterns and position themselves ahead of Thursday’s EIA storage report. However, prices are likely to hover around $ 3.000 as traders await further escalating information that could start the next breakout rally.