Natural Gas prices have been trying to recover after a four-day losing streak. Traders are examining various data points, including the fact that European Gas storages are currently 73.41% full. This news comes as the US Dollar Index has seen a slight increase following a weak performance on Monday.
The price of Natural Gas is currently holding above the $2.80 level as it attempts to avoid a fifth consecutive day of losses. The recent decrease in pressure on the energy commodity can be attributed to Israel Prime Minister Benjamin Netanyahu dismantling its war cabinet and allowing humanitarian aid convoys into the Gaza region on Monday. This move has helped ease tensions in the region following the attack on an Israeli music festival by Hamas on October 10, 2023.
In addition to geopolitical factors, the US Dollar Index, which measures the value of the Greenback against six major currencies, has seen some fluctuations. While it started the week on a negative note, it is now showing a slight increase ahead of the release of US Retail Sales data for May. With the European election risk becoming less of a concern, markets are shifting their focus back to US data. Furthermore, the US Federal Reserve has several speakers scheduled for Tuesday, which could lead to significant movements in the Greenback.
As of the time of writing, Natural Gas is trading at $2.87 per MMBtu. Some key news and market movers in the Natural Gas sector include European LNG storages reaching 73.41%, Shell Plc’s acquisition of LNG trader Pavilion Energy, the resumption of Norwegian gas flow into Europe, and the extension of collaboration between Var Energi and VNG.
In terms of technical analysis, Natural Gas prices are expected to decrease further despite efforts to maintain current levels. With European gas storages filling up and tensions in the Middle East easing, there is a risk of decreased demand for LNG in the near future. Key levels to watch include $3.08 as resistance and $2.54 as support.
Factors that influence Natural Gas prices include supply and demand dynamics, weather conditions, competition from other energy sources, geopolitical events, and government policies. The weekly inventory bulletin from the Energy Information Administration (EIA) is a crucial economic release that impacts Natural Gas prices, along with data from major consumers such as China, Germany, and Japan.
It is important to note that investing in open markets carries risks, including the potential loss of your investment. The views expressed in this article are those of the author and do not constitute investment advice. It is recommended to conduct thorough research before making any investment decisions.