23 Dec 2014
Natural Gas recovers from 2-year lows
FXStreet (Mumbai) - Natural Gas futures on NYMEX rebounded today from fresh two year lows of 3.120/mmBtu reached in the previous session, as traders sought to profit taking after the recent weakness.
Natural Gas futures for January delivery trades at USD 3.184/mmBtu levels, up 1.26% compared to previous session’s close of USD 3.144/mmBtu. Natural gas prices slumped about 10% yesterday, the lowest level since January 2013. The sell-off seen in natural gas prices was on the back of forecasts of milder temperatures over the next seven days which caused the traders to close their positions ahead of Christmas holidays.
Moreover, U.S. Energy Information Agency (EIA) found last week that natural gas inventories have moved into a surplus position for the first time this year as above average temperatures this month has dampened the demand for the heating fuel.
Markets now await Natural gas storage data from EIA to be released tomorrow to gauge the demand for heating fuel for further clues on the price direction.
Natural Gas Levels to consider
Natural Gas prices have an immediate resistance located at 3.216 (Today’s High), above which gains could be extended to 3.3 levels. Meanwhile, support is seen at 3.120 (Dec 22 Low), below which it can extend losses to sub 3 levels.
Natural Gas futures for January delivery trades at USD 3.184/mmBtu levels, up 1.26% compared to previous session’s close of USD 3.144/mmBtu. Natural gas prices slumped about 10% yesterday, the lowest level since January 2013. The sell-off seen in natural gas prices was on the back of forecasts of milder temperatures over the next seven days which caused the traders to close their positions ahead of Christmas holidays.
Moreover, U.S. Energy Information Agency (EIA) found last week that natural gas inventories have moved into a surplus position for the first time this year as above average temperatures this month has dampened the demand for the heating fuel.
Markets now await Natural gas storage data from EIA to be released tomorrow to gauge the demand for heating fuel for further clues on the price direction.
Natural Gas Levels to consider
Natural Gas prices have an immediate resistance located at 3.216 (Today’s High), above which gains could be extended to 3.3 levels. Meanwhile, support is seen at 3.120 (Dec 22 Low), below which it can extend losses to sub 3 levels.