Natural Gas April 2018 prices trade at $2.71 amid colder days in mid March

Natural Gas April 2018 contract trades at $2.715, +0.02% on Monday’s US early session amid weather prediction for  colder temperatures for the mid March days. Natural Gas finished last week with total weekly gains of +1.5% and still holds the recent’s rally profits from the lows of $2,58, but has failed several times to break above $2.72 until now.

Fundamental Analysis:

  1. Weather forecasts models still give support to the Natural Gas prices since they predict colder days in the North East USA for the middle of March which could give some small draws in the inventories.
  2. According to EIA data, US Natural Gas production reached an all-time high of 78.5 Bcf/d, up 0.4 Bcf/d since last week and up 7.4 Bcf/d since last year.
  3. According to EIA data, the US LNG exports reached an all-time high of 4.5 Bcf/d since the Cove Point terminal started delivering while the Sabine Pass terminal also rebounded in exports. Total LNG exports are projected by EIA to double during the second half of 2019 reaching the 10 Bcf/d.

Technical Analysis

Natural Gas April 2018 still trades inside the upward channel since mid February while the upper and lower bands of the channel works as support and resistance points. Price has found support around $2.70 since the weather temperatures are projected slightly bullish in March. Traders are waiting for significant change in the weather forecasts in favor of more warmer days in end of March and beginning of April to start pressuring the price.

Natural Gas April 2018

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