Natural Gas Outlook For The Week Ahead
Satendra Singh | Jul 20, 2018 04:33AM ET
Since the U.S. Energy Information Administration has released its weekly report announcing that the Natural Gas storage in the U.S. increased by 46 billion cubic feet in the week ended July 13, compared to forecasts for a build of 58 billion, Natural Gas Futures have been sustaing above $2.767. Thursday’s data compared with a gain of 51 billion cubic feet (bcf) in the preceding week and represented a decline of 710 billion from a year earlier and was also 535 bcf below the five-year average. Total U.S. natural gas storage stood at 2.249 trillion cubic feet, 24.0% lower than levels at this time a year ago and also 19.2% below the five-year average for this time of year.
On analysis of the movement of Natural Gas futures in different time frames, I've found that the sustenance above the level of $2.767 since the announcement of weekly inventory provides enough evidence of the beginning of strong moves from the current levels. The tariff trade war, which remain in focus since last few weeks and has forced most of the commodities towards their long term bottom, seems to be tilting toward escalation, which will prevail over the demand-supply equation of Natural Gas. Amid the current geo-political global scenario, I expect the following trading zones for Natural Gas futures for the Week of July 22nd, 2018.
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