FxNews—Natural gas prices in the U.S. are currently around $2.36 per million British thermal units, close to the lowest in five weeks. The expected warm weather into early November could lead to lower heating needs.
Additionally, this week, there has been a reduction in the amount of gas being sent to facilities to turn into liquefied natural gas (LNG) for export. Although mild weather is likely to continue, a cooler trend predicted for November may increase the demand for heating compared to October.
Regarding production, experts anticipate a potential cut in natural gas output in 2024, the first reduction since 2020 due to decreased drilling activities.
Also read: Middle East Tensions Push Oil Above $72 as US Stocks Jump.
NATGAS Analysis – 24-October-2024
NATGAS trades bullish, above the 23.6% Fibonacci retracement level at $2.32. As of this writing, the Natural gas price consolidates, clinging to the upper line of the bullish flag, while the RSI 14 signals the uptrend could resume.
Additionally, the Awesome Oscillator histogram is green, above the signal line, which indicates that the bull market should prevail.
From a technical perspective, the next bullish target could be the 38.2% Fibonacci retracement level at $2.42 if the price holds above the flag’s median line, the $2.32 mark.
Conversely, a dip below the critical support of $2.32 will likely trigger a new bearish wave that could extend to the flag’s lower line at approximately $2.24.