27 Oct 2014
Natural Gas recovery fails
FXStreet (Mumbai) - Natural Gas prices are falling ahead of the US session after an an early rebound witnessed during the Asian session failed.
Natural Gas for December delivery is trading 1.03% lower at USD 3.66/mmbtu, after having hit a high of USD 3.72/mmbtu earlier today. The recovery seen earlier today was triggered by updated weather forecast, which show a possibility of slight chill at the start of November. This is likely to increase the heating demand for the Fuel. However, markets are having a hard time digesting the fact that record high production in the US has increased supplies to a level which will outstrip the demand even during the peak season of Winter.
However Natural Gas is likely to stay about USD 3.5, according to analysts at Barclays Plc. “With coal delivers often blocked due to congested railroads and maintenance of nuclear energy plants, there will be enough demand for natural gas to sustain above USD 3.5 levels.“
Natural Gas Technical levels
Natural gas has an immediate support of 3.641 (Oct 24th low), below which the prices can fall to 3.5 levels. On the flip side, prices can rise to 3.83 levels if the immediate resistance of 3.72 is taken out.
Natural Gas for December delivery is trading 1.03% lower at USD 3.66/mmbtu, after having hit a high of USD 3.72/mmbtu earlier today. The recovery seen earlier today was triggered by updated weather forecast, which show a possibility of slight chill at the start of November. This is likely to increase the heating demand for the Fuel. However, markets are having a hard time digesting the fact that record high production in the US has increased supplies to a level which will outstrip the demand even during the peak season of Winter.
However Natural Gas is likely to stay about USD 3.5, according to analysts at Barclays Plc. “With coal delivers often blocked due to congested railroads and maintenance of nuclear energy plants, there will be enough demand for natural gas to sustain above USD 3.5 levels.“
Natural Gas Technical levels
Natural gas has an immediate support of 3.641 (Oct 24th low), below which the prices can fall to 3.5 levels. On the flip side, prices can rise to 3.83 levels if the immediate resistance of 3.72 is taken out.