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Natural gas prices took an upside trend last week after the EIA report for natural gas inventories showed inventories rose below expectations, which put upside pressure on natural gas prices, while natural gas prices were also supported by rising demand from rising power demand in the South, which helped in pushing natural gas prices higher, as traders expect demand power plant fuel to rise on speculations of warm weather conditions.
Also, speculations continue to mount that inventories of natural gas will decline in comparison to the 5-year average as well as compared to last year’s average, and that continues to push natural gas prices higher.
Next week though we should expect prices to extend the gains fueled by expectations of higher demand, although we might witness a downside correction, but it shouldn’t change the short term trend to the upside.
Highlights for this week that will probably affect the Natural Gas direction are:
Thursday, 14:30, The EIA will release the weekly natural gas storage change for the week ending April 29, where the prior report showed that natural gas inventories increased by 31 billion cubic feet.
Originally posted here
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