Caution: Trading involves the possibility of financial loss. Only trade with money that you are prepared to lose, you must recognise that for factors outside your control you may lose all of the money in your trading account. Many forex brokers also hold you liable for losses that exceed your trading capital. So you may stand to lose more money than is in your account. HowToTrade.com does not guarantee the profitability of trades executed on its systems. We have no knowledge on the level of money you are trading with or the level of risk you are taking with each trade. You must make your own financial decisions, we take no responsibility for money made or lost as a result of using our servers or advice on forex related products on this website.
Expand Offer

Save $228 on our Trade Together program, paid for by our partner.

Learn More

Save $228 on our Trade Together program, paid for by our partner.

Learn More

Natural Gas Daily Price Analysis – Shifts in Production and Weather Impact Trends

  • 3 mins read ●
  • Published:
natural gas market analysis 3

Traders are expected to keep their ears to the ground regarding production cuts, weather forecasts, and broader economic data that seem to strongly affect NG’s recent price movements.

Key Points

  • Recent fluctuations in Natural Gas prices highlight the impact of production adjustments and weather forecasts on market dynamics.
  • Production cuts by major producers like EQT Corp respond to low-price environments, temporarily boosting prices.
  • The outlook for warmer winter temperatures and its effect on heating demand could moderate price gains.

Natural Gas Daily Price Analysis – 06/03/2024

Natural Gas experienced a slight decrease in its closing price to 1.935 from an open of 1.950, marking a -1.12% change today. This follows a more positive movement the previous day, with a significant increase of +2.14% from an opening price of 1.928 to a close of 1.957. This recent fluctuation in Natural Gas prices could be attributed to various factors, including market reactions to production cuts, weather forecasts, and broader economic data.

On Tuesday, before the current trading day, Natural Gas prices showed some strength, gaining on news of production cuts by EQT Corp, the largest U.S. natural gas producer, which announced it would reduce net production through March due to low prices. However, these gains were tempered by forecasts for warmer winter temperatures in the central and eastern U.S., which could reduce heating demand and elevate supplies. The weather’s impact on natural gas demand is critical, as a mild winter has significantly curbed heating consumption, leading to inventories remaining well above average levels​​.

Looking at the broader market, the Henry Hub spot price, a benchmark for natural gas prices, rose slightly from $1.60 to $1.63 per million British thermal units (MMBtu) in the week ending February 28, 2024. Despite these movements, forecasts and actual temperature changes have influenced natural gas prices in various regions, affecting consumption patterns and, subsequently, pricing. 

For instance, in the Northeast U.S., prices saw an uptick with forecasts of colder temperatures. However, a significant decrease in consumption was observed overall due to lower demand for space heating. Conversely, prices on the West Coast declined, partly due to high natural gas storage inventories contributing to lower prices for this time of year​​.

Key Economic Data and News to Be Released Today

There are many key economic data to focus on today: crude oil inventories, gasoline production, and the EIA Crude Oil Stocks Change Report. The interaction between crude oil and natural gas markets is usually complex. 

An increase in crude oil inventories, indicating potentially lower crude oil prices, could lead to increased profitability for natural gas, especially if oil-to-gas switching becomes economically viable for power generation. 

Additionally, natural gas traders will be closely watching the EIA storage report, which is scheduled for tomorrow. 

Visit our Economic Calendar

Natural Gas Technical Analysis – 06/03/2024

We have an interesting price movement today. The price seems to have only headed down earlier today to find support at the intraday 200 EMA before continuing its bullish movement.

natural gas 15min chart
Natural Gas 15Min Chart – 07/02/2024

A close look at the price slant relative to the 200 EMA shows that the price is still bullish. The RSI also hinted that NG price came to the 50 point to find equilibrium, suggesting that there’s still more room for a bullish run before the price enters the overbought territory.

Natural Gas Fibonacci Key Price Levels 06/03/2024

Short-term traders planning to invest in NG today should keep a close eye on the following key price levels for the day:

SupportResistance
1.9191.947
1.9271.951
1.9311.959

Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.

Trade Like a Predator Hunt for Opportunities

Sign up now for FREE access to our exclusive trading strategy videos. Want more? Explore our Trade Together program for live streams, expert coaching and much more.

Here’s what you’ll get:

Identifying high probability scalping setups
When to scalp and when to stay out
Precise entries and exits
Position sizing and risk management
HTT Piranha Strategy Course thumbnail
By clicking the 'Learn Free Now' button you agree to our Terms of Service and Privacy Policy
HTT Connor, arms crossed

In partnership with our recommended partner SwitchMarkets partnering broker logo

Wait!

1Register with Switch Markets.
2Verify your identity.
3Unlock Trade Together program for free!
Learn More

"Join our Trade Together program and interact with us in real-time as we trade the markets together."

HowToTrade Coaches