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US Natural Gas Prices Forecast: EIA Report Anticipated to Impact Market

US Natural Gas Prices Forecast

US Natural Gas futures are on a downward trajectory, influenced by global events.

EIA’s Upcoming Storage Report

The U.S. Energy Information Administration (EIA) is set to release its weekly storage report, with projections hinting at a 38 Bcf build for the week ending September 1. However, a temporary pause in a planned strike at Chevron’s liquefied natural gas facilities in Australia has led to significant market fluctuations, with the Dutch October natural gas contract experiencing a 7.2% drop.

Short-Term Outlook for Natural Gas

The short-term outlook for natural gas remains bearish, with moderating heat forecasts and supply-demand fluctuations presenting challenges.

Global Developments and US Market Response

US Natural Gas futures showed a modest decline influenced by the upcoming EIA storage report, easing global demand, and cooler weather forecasts.

Historical Context and Storage Report

Working gas in storage in the US stood at 3,115 Bcf by August 25, 2023. Thus, indicating an increase of 32 Bcf compared to the upcoming week.

Australian Strike Pause and Its Consequences

Workers at Chevron’s liquefied natural gas facilities in Australia temporarily halted a planned strike, coinciding with ongoing disputes over pay and conditions.

Global LNG Dynamics and US Market

Australia’s role as the world’s leading LNG exporter amplifies the importance of these developments. While the US natural gas futures dropped due to moderating heat forecasts. The present landscape paints a bearish picture for the short term, compounded by predictions of higher temperatures leading to greater electrical demand.

Technical Analysis of Natural Gas Market

The Natural Gas market currently exhibits bearish signals with potential resistance levels and an RSI indicating oversold territory. Support and resistance levels incline towards the market sentiment leaning towards the bearish side.

Trading Compass

Disclaimer: Please note that this article serves solely for informational purposes and shall not comprise of financial advice. We advise readers to conduct with research and consult with financial professionals before making any investment decisions


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