Natural Gas Price Prediction – Prices Ease As Production Rises

Natural gas prices eased on Wednesday following Tuesday’s rally. Throughout most of the Northern portion of the United States, warm weather is expected to continue to buoy cooling demand. U.S. production of natural gas topped 92 Bcf per day, according to the EIA.

Technical Analysis

Natural gas prices eased after rallying for a 2-consecutive trading session. Prices are poised to test target support near the May highs at 3.21. Support is seen near the 10-day moving average at 3.02. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. Short-term momentum is neutral as the fast stochastic reversed after generating a crossover buys signal.

U.S. Production Rises

U.S. production of natural gas tops 92 Bcf per day, according to the EIA. The average total supply of natural gas rose by 0.4% compared with the previous report week. Dry natural gas production grew by 0.7% compared with the previous report week to 92.4 Bcf per day. At close to 93 Bcf per day, the EIA estimated production on Sunday was the highest since mid-April 2020. Average net imports from Canada decreased slightly by 0.2% from last week.