Natural Gas Price Prediction – Prices Surge on Colder Weather Forecast

Natural gas prices rose 5.5% on Friday, ending the session from the day's highs. Colder-than-normal weather is expected to cover most of the US Midwest for the next 8 to 14 days, which is likely to fuel demand for natural gas. Hurricane Delta is still active in the Gulf of Mexico and disrupted nearly 20% of natural gas production. The number of oil and gas rigs, a leading indicator of future production, rose three to 269 in the week ended October 8th. The number of natural gas rigs decreased by 1 while the number of oil rigs increased by 4. The EIA forecasts natural gas production in 2020 to be down.
Technical analysis
Natural gas prices rose sharply on Friday, falling near a downward trendline near 2.87 before resistance. Prices reached resistance near the 50-day moving average, which is now near 2.74. The medium-term dynamic has developed positively as the MACD index (Moving Average Convergence Divergence) generated a crossover buy signal. This occurs when the MACD line (the 12-day moving average minus the 26-day moving average) crosses the MACD signal line (the 9-day moving average of the MACD line). The RSI also shot higher, reflecting accelerated positive momentum.
EIA predicts lower production for 2020
EIA predicts US dry natural gas production will average 90.6 Bcf / d in 2020, compared to 93.1 Bcf / d in 2019. Natural gas production declines most in the Perm region, where the EIA expects that low crude oil prices will lower the associated natural gas prices. The EIA forecast for dry natural gas production in the US averages 86.8 Bcf / d in 2021 compared to 2020.
This article was originally published on FX Empire
More from FXEMPIRE:
Crude oil price forecast - Crude oil continues to move upwards
Weekly price forecast for GBP / USD - continues to wrestle with the same level
Natural gas price forecast - prices rise due to colder weather forecast
Weekly gold price forecast - gold markets form bullish flags
Silver Weekly Price Forecast - Silver Form Bullish Candlestick
Weekly price prediction for S&P 500 - continuation of rally based on impulses

You should check here to buy the best price guaranteed products.

Last News

Luis Severino suffers lower-body injury during 2nd rehab start vs Brooklyn Cyclones

Boris Johnson's warning to EU: 'I will not hesitate to take unilateral measures over Northern Ireland'

Wipeout: Slam Poetry

Mom makes incredible catch during baseball game

Kim Kardashian Puts Her Peaches on Display in New Bikini Photo

Dog gives the sweetest hugs to caretaker after being shut in crate for 6 years