Natural gas prices moved lower on Tuesday, giving back 3.4% after rallying for a 6-consecutive trading session. The weather is expected to be warmer than average throughout most of the United States except for the North East for the next two weeks. There are no anticipated disturbances to become tropical cyclones in the Atlantic or Gulf of Mexico over the next 48-hours. U.S. Exports of LNG continued to grow in the first 6-months of 2021.
Natural gas prices moved lower on Tuesday, declining by 3.4% and giving back some of the August contract’s recent gains. Support is seen near the 10-day moving average near 3.87. Resistance is seen near the July highs at 4.19. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal in oversold territory. The fast stochastic has moved from above 80 (overbought) to 65, reflecting accelerating negative momentum. Medium-term positive momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in positive territory with a sliding trajectory that points to consolidation.
U.S. Exports of LNG Rise
According to the EIA, U.S. exports of liquefied natural gas continued to grow in the first six months of 2021, averaging 9.6 billion cubic feet per day. This average marks an increase of 42%, or 2.8 Bcf per day, compared with the same period in 2020. During the summer months of 2020, U.S. LNG exports fell to record lows.