Natural Gas May Witness Prices Drops 3%, Resistance 286
CommodityOnline | Jun 22, 2014 01:10AM ET
Natural gas dropped as forecasts for milder weather may cap demand from power plants, bolstering efforts to increase stockpiles. A sustained below 280 level can test 266-252 level in next 1week span.
--Naturalgas prices dropped by around three percent on weekly basis as pressure seen after data showed that U.S. natural gas supplies rose more than expected last week.
--The U.S. EIA said in its weekly report that natural gas storage in the U.S. rose by 113 billion cubic feet.
--Stockpiles increased by 92 billion cubic feet in the same week a year earlier, while the five-year average build for the week is 87 billion.
--Producers would need to add approximately 2.6 trillion cubic feet to storage by November 1 to meet typical winter demand.
--Meanwhile, updated weather-forecasting models showed that warmer weather was expected in the U.S. Central and East over the next five days before cooling in the East over the next six-to-10 days.
Natural gas dropped as forecasts for milder weather may cap demand from power plants, bolstering efforts to increase stockpiles. A sustained below 280 level can test 266-252 level in next 1week span. Technically market is getting support at 272 and below same could see a test of 260 level, and resistance is now likely to be seen at 286, a move above could see prices testing 300.
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