Natural Gas holds steady above $2.13 amid global market movements
Natural Gas prices remain stable, hovering between $2.13 and $2.36 in August. While demand in Europe and China is low, New Zealand is making changes to address its energy crisis. On the other hand, the US Dollar Index is showing signs of recovery ahead of Nvidia’s earnings, which could impact the market. At the time of writing, Natural Gas is trading at $2.19 per MMBtu.
Key developments in the Natural Gas market
- Norwegian Gas exports to Europe have dropped due to seasonal maintenance.
- Inpex has canceled LNG shipments from its Ichthys facility in Australia.
- New Zealand plans to lift a ban on Oil and Gas exploration permits to address energy disruptions.
- Potential geopolitical tensions could impact gas supply to Europe.
Technical analysis and market outlook
Natural Gas prices are expected to remain range-bound, with limited catalysts for a significant surge. Moving averages serve as key resistance levels, while a breakdown below $2.13 could lead to further downward movement. The market is influenced by factors such as global economic growth, industrial activity, and geopolitical events.
(Correction: New Zealand will pass a law to clear regulatory hurdles for LNG imports, not remove a ban on LNG imports. The ban being removed is on offshore Oil and Gas exploration.)
Natural Gas FAQs
What influences Natural Gas prices?
Factors such as supply and demand dynamics, global economic growth, weather conditions, competition from other energy sources, geopolitical events, and government policies affect Natural Gas prices.
What economic releases impact Natural Gas prices?
The weekly inventory bulletin from the Energy Information Administration (EIA) and economic data from major consumers like China, Germany, and Japan influence Natural Gas prices. Economic releases affecting the US Dollar also play a role due to Natural Gas being priced in USD.
How does the US Dollar impact Natural Gas prices?
As most commodities are priced in USD, the value of the US Dollar affects Natural Gas prices. A stronger Dollar means lower prices for Gas, while a weaker Dollar leads to higher prices.