Natural gas continues to rise and break the price resistance levels day after day, as the price of spot natural gas (CFDS ON NATURAL GAS) rose today during yesterday’s trading session. This is after a series of rises during the last trading period on intraday levels, to achieve slight daily gains. It then increased by 6.41% to settle at the price of $7.954 per million British thermal units, after it dropped sharply in last week’s trading to the level of $7.373.
Natural gas prices fell last Thursday after three consecutive days of gains, with June futures in Nymex dropping 45.1 cents to $6.888 per million British thermal units, and July futures dropping 44.2 cents to 6.370 dollar.
NGI’s Spot Gas National Avg, which traded Thursday for gas delivery on Friday and Saturday despite the continuation of unstable weather in the eastern US, was down 50.0 cents to $6,570.
The US Energy Information Administration (EIA) said that US natural gas inventories rose by about 40 billion cubic feet in the week ending April 22, and economists polled by the Wall Street Journal had expected a rise of 38 billion cubic feet.
Production in the US has shown some signs of recovery, but during the ongoing maintenance season production may fluctuate over the next couple of months, Canadian imports were lower with Mexican exports rising slightly.
On the technical analysis side, we are expected to see a decline in the price to reap the profits of its recent rises and to try to gain some positive momentum that may help it recover and rise again.