By FX Empire.com
Natural gas prices fell last week on forecasts that inventories of natural gas are approaching a record before the beginning of the winter season, where natural gas stockpiles are 3.2% above the five-year average, and 1.3% below last year’s record high. While the EIA report showed natural gas inventories increased by 103 billion cubic feet, slightly below estimates of 110 billion cubic feet, but nearly double the 58 billion cubic feet five-year average gain for the week.
Traders will be focused on the weather forecasts, where cold weather conditions are expected to increase demand for natural gas, and that could push prices higher, since demand for the heating fuel would increase as a result, but the fact that inventories are approaching a record high could still push prices lower.
Highlights for this week that will probably affect the Natural Gas direction are:
Thursday October 27:
At 14:30 GMT, The EIA will release the weekly natural gas storage change for the week ending October 21, where the prior report showed that natural gas inventories increased by 103 billion cubic feet.
Read more Weekly Forex Analysis here.
