Natural Gas Price Forecast – Prices Rise 9% to 13-Year Highs

key ideas

  • Natural gas prices have reached new highs.
  • The weather is expected to be warmer than normal in the South.
  • US Natural arriving at LNG terminals continues to remain high.

On Monday, natural gas prices soared to new 13-year closing highs. According to the National Oceanic Atmospheric Administration, the weather is forecast to be warmer than normal across most of the south for the next 6-10 and 8-14 days.

According to the Energy Information Administration, net withdrawals of natural gas from US storage totaled 2.264 billion cubic feet this winter. The volume is the largest volume of natural gas withdrawn from storage since the winter of 2017-2018 and 10% higher than the previous five-year average, which includes data through March 2022.

Technical analysis

Natural gas prices jumped on Monday, rising more than 9%. Support is near the 10-day moving average of 8.72.

The short-term momentum remains positive as the fast stochastic has generated a crossover buy signal. Prices are overbought as the Fast Stochastic shows a reading of 90, above the overbought trigger level of 80.

The medium-term momentum is reversing and attempting to turn positive as the MACD (Moving Average Convergence Divergence) histogram prints in negative territory with an upward trajectory that indicates consolidation.