Natural Gas on the Nymex had a very positive week closing 19.1% higher than the previous one at $3.98. EIA reported on Thursday a bearish, nonetheless, draw for this time of year of only 40 Bcf in working underground stocks for the week ended January 3. Total inventory is currently at 3,373 Bcf, 0.1% lower y/y, 6.5% above the 5-year average.Too much profiteering from different market participants on a colder Northeast these last few weeks. The consumption went up fast, close to 30% in the New York area. Of course, supply is keeping pace with demand naturally, even with fewer online rigs since last year. Total inventory remains easily above the 5-year average. Any rally is to be sold immediately. We expect prices to consolidate later in spring at about a fair $2.50 level. We are going to reevaluate a floor later in February for late April. Put Options have become attractive again on this latest gift the market offered us. The same price areas will give us multiple times the profit on directional trading on the near-term charts until then. We are going to remain vigilant on any daily to hourly chart on the secondary market. The daily has already started to look overbought.The devastation in Los Angeles, in areas where natural gas transits, is shocking. Same with yesterday’s accident in the Bronx. This is not the time to talk about the security challenges that the industry will face in the coming years. What are the insurance companies going to think about any residential area connected to natural gas. As the president-elect recently stated, the price of natural gas in the US needs to be cheap for different reasons. In defamation conditions, the market share of electricity production will become more and more necessary for natural gas producers on an industrial scale. It must be preserved at all costs. The new media fad about the electricity data centers will consume, in the next ten years, is offensive, to say the least. Especially when the same stakeholders demand cleaner forms of energy to meet their demands. Since last summer, I have analyzed the reasons why I believe that US central interest rates will remain higher than the main street would have liked them to be. The euro is already depreciating against the dollar. The condition to sell more American natural gas to a continent that already consumes 20% less than three years ago will only be a better price. U.S. macro data and the dollar against majors have to be monitored routinely. Daily, 4hour, 15min MACD and RSI are pointing to entry areas. More By This Author:Natural Gas: In Downtrend
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