Natural Gas week ahead

Nymex Natural Gas market tumbled during the week closing 6% lower than the week before at $2.49. EIA confirmed a 92 Bcf build on Thursday for week ending April 12 which is well above average for this time of year. The injection season already started with spectacular builds while record high production and U.S. proved reserves can only put more pressure on most of the producers. Short term hedging is always expected as major pricing hubs accross the U.S. already hurt from high basis differentiation. 2016 lows dominating Spot’s long term sentiment and additional major LNG export agreements are yet to be confirmed. We hold any short position and looking to re-sell, on first sign of weakness, the first bounce that will naturally come as price shifted quickly to an area that offered support repeatedly. We cannot buy any long contract for the months to come, not before a break above the $3.20. Summer will contribute to some straightening in demand. Daily, 4hour, 15min MACD and RSI offering precision in our entry decisions.

 

Dimitris Kontoulis.