NATGAS price rose over 5.00% as colder than previously expected weather over the next two weeks is set to boost demand for heating. Price increase came despite a EIA report showing a smaller-than-expected storage decline last week. Working gas held in storage facilities in the US fell by 21 billion cubic feet last week, less than analysts’ estimates of a 31 billion cubic feet fall. At the same time, the Freeport LNG export plant in Texas, forced to go offline in June following a fire, expects to begin bringing operations back online only by year's end, in another delay due to pending regulatory approval, which should keep LNG exports below record levels hit in March and leave more gas in the US for domestic use.
NATGAS extended yesterday's rally and broke above psychological resistance at $6.0. Next resistance to watch lies at $6.30 and is marked with 78.6% Fibonacci retracement of the upward wave started in October 2022 and downward trendline. Source: xStation5
