Natural Gas Trending LowerPosted 10/29/2018 10:27AM CT |
Natural gas for December delivery is down in the early session with the recent price action suggesting a move lower. Some support may have been garnered by news that the Chinese are set to shift more households to gas heating, but is largely offset by record storage levels. Last Thursday’s weekly gas storage injection showed 58 bcf versus the average estimate of 52 bcf in comparison to the five-year average of 77 bcf. Total storage remains 16.8% below the five-year average. Weekly gas rig operating count increased by three rigs. Temperatures are forecast to be below average through the first week of November over the central US which should incite demand. Key support and pivot point for the December contract is seen around 3.15 with the next downside target near the 50 day moving average around 3.11.
Natural Gas Dec ’18 Daily Chart