Natural Gas week ahead.

Nymex Natural Gas futures carried a volatile week. Friday’s session closed 0.40% higher than the week before at $2.68. Trading volumes remain average while Thursday’s EIA storage report confirmed the first build for the season with a 23 Bcf injection in U.S. working underground stocks for the week ended March 29th. This figure was large enough to immediately press the price lower but only for a day.

We will be looking for price to develop range bound movements for the coming months while we approach the refill season, founding opportunities to sell any rallies on exhaustion. We will not buy the longer term, not before we see a break above the $3.20 which might not even happen before Autumn. Demand will remain low for the coming week on milder weather than normal across most of the U.S. and Canada. Some hubs are now at record low price levels and 2016 lows still shaping the market’s sentiment overall. Price will naturally remain under pressure in the coming months, unless we see significant improvements in macros which directly determine its value. Record high production and working rigs are keeping pace with shallow stocks and present LNG export agreements. Daily, 4hour, 15min MACD and RSI show entry opportunities.

 

Dimitris Kontoulis.