Natural Gas Futures Daily Trading Forecast

During Thursday’s trading session natural gas futures for delivery in May traded within the range $4.524-$4.702 and closed at $4.638.

At 07:47 GMT today natural gas futures for settlement in May traded at $4.669 per million British thermal units, adding 0.3% for the day. The contract touched a daily high at $4.673 per mBtu at 06:05 GMT.

Fundamental view

The Energy Information Administration reported yesterday that US natural gas inventories rose by 4 billion cubic feet in the seven days through April 4, compared to analysts expectations for a gain of 15 billion cubic feet. The five-year average is an increase of 9 billion cubic feet.

Total gas held in US underground storage hubs fell to an 11-year seasonal low of 826 billion cubic feet. US gas stockpiles were 50.7% below last year’s amount of 1.675 trillion cubic feet during the comparable week. The deficit to the five-year average remained unchanged at a record 54.7%.

Natural gas prices were supported after a government report revealed a lower-than-expected gain in US inventories, suggesting that the unseasonably cold weather in the US continued to boost heating demand.

A weak cool front will sweep through the far northern US, while the rest of the country will experience warmer conditions, with highs mainly in the 70s and 80s, NatGasWeather.com reported on April 11.

Temperatures will remain in the 50s to 60s for much of the Midwest and Northeast., before high pressure builds into the Great Lakes and New England later in the weekend, leading to several days of near to above-normal temperatures.

However, another weather system will track into the northern Plains on Monday with some freezing Canadian air and will push far into the central US, leading to few days of unseasonably cold temperatures.

Technical view

According to Binary Tribune’s daily analysis, in case natural gas price manages to breach the first resistance level at $4.719 per mBtu, it will probably continue up to test $4.799 per mBtu. In case the second key resistance is broken, the energy source will probably attempt to advance to $4.897.

If natural gas price manages to breach the first key support at $4.542, it will probably continue to slide and test $4.443. With this second key support broken, the movement to the downside will probably continue to $4.363 per mBtu.