• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 15 minutes WTI @ 67.50, charts show $62.50 next
  • 8 hours The EU Loses The Principles On Which It Was Built
  • 1 min Starvation, horror in Venezuela
  • 2 hours Saudi Fund Wants to Take Tesla Private?
  • 17 hours Crude Price going to $62.50
  • 4 hours Why hydrogen economics does not work
  • 26 mins Tesla Faces 3 Lawsuits Over “Funding Secured” Tweet
  • 51 mins Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 13 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 1 day Chinese EV Startup Nio Files for $1.8 billion IPO
  • 1 day Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 1 day < sigh > $90 Oil Is A Very Real Possibility
  • 6 hours California Solar Mandate Based on False Facts
  • 13 hours Saudi Arabia Cuts Diplomatic Ties with Canada
Alt Text

Ghana Boosts Natural Gas Production

Momentum in Ghana’s hydrocarbons industry…

Alt Text

The U.S. Remains The Natural Gas King

The U.S. remained the global…

Alt Text

Is This The Next Natural Gas Giant?

Nigeria has long been renowned…

FX Empire

FX Empire

More Info

Trending Discussions

Natural Gas Analysis for the Week of September 19, 2011

Like crude oil, November Natural Gas appeared to be set up for a strong surge to the upside and finish for the week, but supply came in much larger than expected, forcing prices to close near their low of the week. The weak close now has this market in a position to test the early September low at 3.903. Because of the strong downside momentum into the close, expectations are for this bottom to be penetrated fairly easily.

With supply concerns continuing to bear down on the market, there would have to be a dramatic shift to turn this market around over the near-term. Although a pair of resistance lines was penetrated with authority early in the week, the close back below these angles is a clear demonstration of their strength.

Gas price movements

Buy stops appear to be the main reasons for the surge, meaning that the market is still in the hands of strong shorts. Until they can be shaken out by a close over the angles at 3.906 and 3.977 this week, continue to look for more downside pressure and at best a consolidation.

Until the supply and demand picture changes dramatically expect downside pressure to remain firm with new shorts being added on rallies.

Factors Affecting Natural Gas This Week:

• Supply and Demand. Stockpiles rose more than expected last week. Expectations were for an increase of between 81 billion and 85 billion cubic feet, the actual number came in at 87 billion cubic feet. The good news is the figure was 1.6 percent below the five-year average and 4.3 percent lower than last year’s storage level. The question is “If this is a developing trend, then when will it show up in the prices.”

• Commitment of Traders. Until the CoT changes to show a shift from short positions to long positions by professional traders, expectations are for this market to remain under pressure.

• Number of Producing Rigs.  It’s a long-term fundamental but slowly the number of producing rigs has been decreasing, however it has not been enough to underpin the market.

• Weather. The weather comes up as a key factor each week, but there doesn’t seem to be enough high temperatures in the country to warrant excessive demand, furthermore, hurricanes for the most part this season have not caused enough damage to fuel supply shortages.

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

Trending Discussions


Leave a comment

Leave a comment




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