By FX Empire.com
Natural gas prices rose on Wednesday from their lowest level in a year, as weather forecasts signaled the winter season could be the coldest in a decade, which boosted speculations of rising demand for natural gas as a heating fuel. Moreover, the better than expected expansion in U.S. industrial production supported natural gas prices on Wednesday.
Traders are likely to continue their attention on weather developments, while we expect traders to shift their attention to rising supply of natural gas on Thursday, as the EIA report is expected to show that natural gas stockpiles increased by 26 billion cubic feet last week. We expect natural gas prices to remain under pressure on speculations of record supplies ahead of the winter season, where stockpiles are expected to reach 3.855 trillion cubic feet, compared with last year’s record high of 3.84 trillion cubic feet.
Thursday November 17:
At 14:30 GMT, the EIA will release its report for natural gas stockpiles for the week ending November 11, where natural gas inventories increased by 37 billion cubic feet in the prior estimate, and median estimates suggest natural gas stockpiles increased by 26 billion cubic feet last week.
Originally posted here
