Natural gas continues to fluctuate and rise, supported by weather factors and crude oil production cuts
Natural gas contracts rose slightly against the U.S. dollar spot price (XNG/USD) during trading on Wednesday, October 4. At 07:48 a.m. GMT, the natural gas spot contract was trading at $2.965 per million British thermal units against the U.S. dollar.
Investors focused on reports that natural gas prices were trading in a limited range due to weak demand for crude oil, large inventory builds, especially in continental Europe, and weather factors, with temperatures remaining above average for the time of year. As forecasts indicate, global temperatures will remain above seasonal norms until the middle of this month. There are signs that natural gas prices are stabilizing in the same range this month. Reports showing stable production in continental Europe, particularly in Norway, have supported prices within current ranges.
Meanwhile, other reports suggest that demand for natural gas in the UK may fall amid expectations of an increase in UK wind power production this month. Growth in north-western Europe is above the average for this period last year and is expected to continue for several weeks.
Technically, natural gas futures prices fluctuated slightly against the U.S. dollar, with an upward trend, as shown in the chart, with prices approaching the upper boundary of the ascending price channel on the 240-minute time frame. Meanwhile, the pair is trading above the 50 moving average on the 240-minute time frame, indicating a slight upward move in price over the medium term.
Meanwhile, the momentum indicator reflects buyers’ shifting control over the market’s direction. If the price rises, support is expected to center at 2.99 and 3.04 respectively. On the other hand, if the price declines, it will target the support levels of 2.89 and 2.77 respectively. Prices are expected to vary, especially if prices stabilize within the price channels shown.
At 20:49 Beijing time, natural gas was trading at $3.017.
2023-10-04 12:51:00
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