Yahoo Finance Natural Gas Price Prediction – Prices Surge on Cold Weather Forecast
Natural gas prices surged higher on Monday as colder than normal weather is forecast to cover most of the United States for the next 6-14 days. The cold weather will increase heading demand from the mid-west to the north east, providing the backdrop for declining inventories. Last weeks inventory draw was larger than expected despite warmer than normal temperatures that reduced demand. Export demand continue to remain robust as LNG continues to see increasing contracts.
Technical Analysis
Natural gas prices surged higher on Monday following the colder than normal forecast produced by the National Oceanic Atmospheric Administration. Prices surged and are poised to rebound back to the 4-dollar handle. Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) cross above the MACD signal line (the 9-day moving average of the MACD line).
LNG Exports Surge
The EIA reports that LNG exports reach new record high LNG exports in December 2018 set another record, with 36 exported cargoes, after Train 5 at Sabine Pass and Train 1 at Corpus Christi began producing LNG and shipped their first cargoes. Currently, seven liquefaction trains are operating in the United States across three facilities. Three more liquefaction projects (are expected to enter service in 2019.
Chinese Exports and Imports Disappointed
China reported weaker than expected traded data as the surplus expanded to 57 billion from 41.8 billion in November. The widening of the surplus reflects a decline in growth in China. Exports declied by 4.4% compared to expectations that they would increase by 2%. The decline in exports was a 2-year low and reflects declining growth. Imports dropped by 7.6% compared to expectations that they would rise by 4.5%. Exports to the United States dropped by nearly 4% in December compared to a 10% increase in November.
This article was originally posted on FX Empire
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