Futures hit a seven-year high yesterday amid growing fear for supply and production as Category 1 Hurricane Nicholas entered the Gulf region after Hurricane Ida, a hurricane category 4.
Now that Hurricane Nicholas has turned into a simple tropical depression and swept through Texas, U.S. Gulf energy companies have been able to redouble their efforts to repair extensive damage from Ida.
Nicholas caused minor flooding and power outages in Texas and Louisiana, where some refineries went offline as a result of Ida, preventing much of offshore oil and gas production. from the Gulf of the United States.
Natural gas futures rallied until Wednesday, but after testing a seven-year high at $ 5.644, they found a wave of selling that pushed futures towards $ 5.309. Some bullish moves can be seen today until the announcement of, which could define the directional movement of futures.
The forecast level of weekly injection could be higher than the forecast level of 76 Bcf. If it stays a little lower, natural gas futures could find another bullish attempt, but resistance could be felt at $ 5.548. Without a doubt, the weekly close level will define the new directional move, but the restoration of supply and production may continue to attract big bears as the current rally was not driven by demand. And bears could hit their target at $ 4.817 if natural gas futures are unable to maintain major support at 4.888.
Disclaimer: The author of this analysis has no position in natural gas futures. Readers are encouraged to take any position at their own risk; because natural gas is one of the most liquid raw materials in the world.
Disclaimer: This analysis is purely based on technical observations. I have no position in natural gas. You can create a position in natural gas at your own risk.