By FXEmpire.com
Analysis and Recommendations:
Natural Gas continued to surprise investors as it moved up to 2.483 up 0.091 climbing for the entire week.
The Energy Administration issues weekly energy updates and reports. This week’s report contained the following information. To read the entire report, you can find it on the EIA website.
Very mild weather over the past winter contributed to natural gas working inventories that continue to set new record seasonal highs, with April 2012 ending at an estimated 2.61 trillion cubic feet (Tcf), about 46 percent more than the same time last year. EIA’s average 2012 Henry Hub natural gas spot price forecast is $2.45 per million British thermal units (MMBtu), a decline of $1.55 per MMBtu from the 2011 average spot price. EIA expects that Henry Hub spot prices will average $3.17 per MMBtu in 2013.
EIA expects electricity generation from coal to decline by about 15 percent in 2012 as generation from natural gas increases by about 24 percent. EIA forecasts that electricity generation from coal will increase by about 4 percent in 2013, as projected coal prices fall slightly while natural gas prices increase, allowing coal to regain some of its power generation share.
Investors pushed up the prices hoping that this recent report along with a lower inventory this week will help improve the price of crude. Tomorrow we should see a great deal of profit taking, as the markets have climbed from under 2.00 up 24%.
WEEKLY
- Natural Gas Weekly Update
Release Schedule: Thursday between 2:00 and 2:30 p.m. (Eastern Time) - Weekly Natural Gas Storage Report
Release Schedule: Thursday at 10:30 (Eastern Time) (schedule)
Click here to read Natural Gas Technical Analysis.
Originally posted here
