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Following the EIA Inventory Report, Natural Gas Prices Consolidate

Larissa Barlow

Apr 22, 2022 10:01

Natural gas prices increased marginally on Thursday in response to the release of the Department of Energy's inventory report. LNG demand continues to grow, as do natural gas arrivals at LNG terminals. Five of the last six days have had pressures exceeding 12.27 Bcf. For the next two weeks, the East coast and midwest are likely to experience cooler temperatures than typical.

 

Natural gas in storage was estimated to be 1,450 Bcf as of Friday, April 15, 2022, per the EIA. Stockpiles increased by a net 53 Bcf over the previous week. The target was a 40 Bcf construct. At this point in the year, stocks were 428 Bcf lower than last year and 292 Bcf lower than the five-year average of 1,742 Bcf. The entire operating gas volume, at 1,450 Bcf, is within the five-year historical range.

 

Technical Evaluation

 

Natural gas prices increased slightly on Thursday but fell to a new low. Support on a short-term basis is located near the 10-day moving average of 6.91. Additional support is located near the top of the most recent range, at the 5.57 February highs. Near the April highs of 8.06, the target resistance is visible.

 

The short-term momentum has flipped and become negative as a crossover sell signal was triggered by the fast stochastic. Both the quick stochastic and the relative strength index have declined out of overbought territory.

 

The medium-term momentum has shifted to the positive side but is now decelerating. The MACD (moving average convergence divergence) histogram is positive with a falling trend, indicating consolidation.

 

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