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12 Dec 2014
Natural Gas extends gains on colder weather outlook
FXStreet (Mumbai) - Natural Gas futures on NYMEX pared losses from the previous session and rallied higher today supported by bullish storage data.
Natural Gas futures for January delivery trades at USD 3.695/mmBtu levels, up 1.66% compared to previous session’s close of USD 3.634/mmBtu. Natural gas prices shot up after US Energy Information Administration (EIA) showed that U.S. natural gas supplies fell more than forecast last week. The U.S. Energy Information Administration (EIA) reported yesterday that U.S. natural gas stocks decreased by 51 billion cubic feet for the week ending December 5, compared with an expected decrease of 45 billion cubic feet. Stockpiles are about 5.2% below their levels of a year ago and about 9.5% below the five-year average.
The gains in Natural Gas prices are also seen on forecasts of colder temperature beginning next week, which may drive the demand for the natural gas.
Natural Gas Levels to consider
Natural Gas prices have an immediate resistance located at 3.743 (Dec 10 High), above which gains could be extended to 3.785 (Dec 8 High) levels. Meanwhile, support is seen at 3.689 (50-day SMA), below which it can extend losses to 3.665 (20-day SMA) levels.
Natural Gas futures for January delivery trades at USD 3.695/mmBtu levels, up 1.66% compared to previous session’s close of USD 3.634/mmBtu. Natural gas prices shot up after US Energy Information Administration (EIA) showed that U.S. natural gas supplies fell more than forecast last week. The U.S. Energy Information Administration (EIA) reported yesterday that U.S. natural gas stocks decreased by 51 billion cubic feet for the week ending December 5, compared with an expected decrease of 45 billion cubic feet. Stockpiles are about 5.2% below their levels of a year ago and about 9.5% below the five-year average.
The gains in Natural Gas prices are also seen on forecasts of colder temperature beginning next week, which may drive the demand for the natural gas.
Natural Gas Levels to consider
Natural Gas prices have an immediate resistance located at 3.743 (Dec 10 High), above which gains could be extended to 3.785 (Dec 8 High) levels. Meanwhile, support is seen at 3.689 (50-day SMA), below which it can extend losses to 3.665 (20-day SMA) levels.