• 25 mins Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 2 hours German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 3 hours Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 5 hours Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 22 hours Oil Prices Rise After API Reports Major Crude Draw
  • 23 hours Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 23 hours Gazprom Speaks Out Against OPEC Production Cut Extension
  • 24 hours Statoil Looks To Lighter Oil To Boost Profitability
  • 1 day Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 1 day Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 1 day Whitefish Energy Suspends Work In Puerto Rico
  • 1 day U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 2 days Thanksgiving Gas Prices At 3-Year High
  • 2 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 2 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 2 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 2 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 2 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 2 days ConocoPhillips Sets Price Ceiling For New Projects
  • 5 days Shell Oil Trading Head Steps Down After 29 Years
  • 5 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 5 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 5 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 5 days Venezuela Officially In Default
  • 5 days Iran Prepares To Export LNG To Boost Trade Relations
  • 5 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 5 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 6 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 6 days Rosneft Announces Completion Of World’s Longest Well
  • 6 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 6 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 6 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 6 days Santos Admits It Rejected $7.2B Takeover Bid
  • 6 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 7 days Africa’s Richest Woman Fired From Sonangol
  • 7 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 7 days Russian Hackers Target British Energy Industry
  • 7 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 7 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 7 days Lower Oil Prices Benefit European Refiners

Natural Gas Analysis for the Week of August 29, 2011

Natural Gas Analysis for the Week of August 29, 2011

Natural Gas futures remained under pressure last week as traders assessed the potential impact of Hurricane Irene on supply and demand. The consensus is that after the hurricane passes, temperatures are likely to drop, leading to less demand for natural gas. Supply is not expected to be affected at all because of the storm’s location.

Technically, the market may be forming a support base, but there doesn’t appear to be a catalyst out there that would help trigger an upside breakout. The weekly chart indicates that last week produced another lower-low. At this point, it is going to take a massive closing price reversal bottom or a breakout over a main top to turn the trend higher. The latter occurrence is an extremely remote possibility.

Natural gas price movements

The first sign of strength will be the penetration and subsequent close over a pair of downtrending Gann angles at 4.05 and 4.12 this week. The good thing for bullish traders is that these angles are dropping .08 per week so eventually the market will pass over to the bullish side. Even if that occurs, a rally is likely to be thwarted at the major retracement area at 4.22 to 4.31.

While it is not being suggested to continue to press the market lower at current levels, based on the supply/demand situation, it is probably best to wait for a short-covering rally before initiating fresh short positions.

Factors Affecting Natural Gas This Week:

• Weather. Hurricane Irene is likely to bring in cooler a temperature which is likely to lead to lower demand.

• Supply/Demand. Investors should start monitoring the number of oil rigs drilling in the U.S. for natural gas. The good news is last week this figure fell by 2 to 898. The bad news is that the count must fall below 800 if production is to balance with demand.

By. FX Empire

FXEmpire.com is the Forex flagship site of the FX Empire Network. The FX Empire Network provides readers with the most expert and most timely technical analyses, fundamental analyses and news-pieces; this in order to empower them to make for themselves the best possible financial decisions. The FX Empire Network’s other flagship sites include: StocksEmpire.com and CommoditiesEmpire.com.




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News