Tuesdays European trading hours saw natural gas futures retain yesterdays downward shift as prices reversed after Thursdays bullish report on natural gas storage supplies in the US. Weather reports for the US forecast very active weather in the following weeks with average to little-above-average gas consumption.
Natural gas futures for settlement in June were traded on the New York Mercantile Exchange at $4.694 per million British thermal units at 9:46 GMT, for a loss of 0.06% off yesterdays close. During the day prices held between $4.709 and $4.677 per mBtu. Thursday marked a major boost for the market, as reports of faltering natural gas replenishment in the US sparked positive sentiment to lift futures more than 4.5%. Yesterday prices rebounded, however, to settle for a drop of 0.93%.
NatGasWeather.com reported that midweek the US will see cooling as cold-air systems above the Plains track out. Cooling will be brief, though, as more high-pressure builds-up will warm up the central and eastern US, and very active weather continues to slightly curb demand in both directions of the average.
According to AccuWeather.com, readings in New York for today – April 22nd, will drop no lower than 47 degrees Fahrenheit – on-level with the average, while tomorrow temperatures will fall to 40 degrees. Further north on the East Coast, Boston will see moderately higher-than-average temps today, falling no lower than 47 degrees Fahrenheit, before cooling tomorrow to 41 degrees. Inland, the Midwest is set for a colder-than-usual day on the 22nd, with Chicago readings expected to reach as low as 35 degrees – well-below the average for this time of the year. Over the next two days, however, a significant warm-up is expected, amounting to as much as a 12 degree-rise in temperatures.
More impressive cold-blasts are expected into the weekend and through the next week though, with the Great Lakes and the Northeast area experiencing higher-than-normal demand for heating. In the coming weeks, NatGasWeather.com expects very active weather as spring storms and high-pressure build-ups swing temperatures back and forth, inducing demand ranging from moderate-to-high in the Ohio valley, to low-to-moderate in the warmer South and Plains.
US Stockpiles
Gas rallied on Thursday after swinging between gains and losses earlier in the day as a bullish EIA storage report signified better-than-expected demand. The government agency reported that US natural gas inventories rose by 24 billion cubic feet in the seven days through April 11th, compared to analysts’ forecasts for a 34-bcf jump. Total gas held in US underground storage hubs amounted to 850 billion cubic feet, 50% below last year’s 1 700-bcf supplies level during the comparable week. The deficit to the five-year average storage narrowed to 54.3% from 54.7% in the previous week, retreating from an 11-year low.
Supplies in the East Region saw a net injection of 6 billion cubic feet to 311 bcf and were 59.7% below the five-year average amount. Inventories in the West Region jumped by 8 billion cubic feet to 168 bcf, 44.0% beneath the average, while stockpiles in the Producing Region rose by 10 bcf to 371 bcf, marking a 53% deficit to the five-year average storage.
Technical view
According to Binary Tribune’s daily analysis, in case natural gas for settlement in June penetrates the first resistance level at $4.775 per million British thermal units, it will encounter next resistance at $4.836. If breached, upside movement will probably attempt to advance to $4.871 per mBtu.
If the energy source drops below its first resistance level at $4.679 per mBtu, it will see support at $4.644. If the second key support zone is breached, the power-station fuel’s downward movement may extend to $4.583 per mBtu.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
