- Prices of Natural Gas clinched yearly highs near $2.80.
- Higher demand is expected to underpin prices in the next months.
- The usual EIA’s report on gas storage comes in on Thursday.
Henry Hub benchmark prices now give away some ground after recording fresh 2020 highs near the key $2.80 mark per MMBtu earlier on Tuesday.
Natural Gas prices face positive prospects
The upcoming winter season is expected to lift prices of the commodity to the vicinity of the $3.00 mark per MMBtu and even beyond, many analysts conclude, always on the back of the predicted increase in the demand for the commodity in the northern hemisphere.
Furthermore, prices are seen attempting some consolidation in the next weeks ahead of the probable upside when colder weather kicks in in the US, Europe and the north of Asia.
Supporting the view of higher prices emerges the expected lower US production coupled with higher demand from Europe and Asia amidst the ongoing economic recovery following the slump earlier in the year due to the coronavirus crisis.
The rebound in prices of natural gas in European and Asian hubs also bodes well for US exports of LNG.
Later in the week, the EIA will release its weekly report on Natural Gas storage (Thursday).
Natural Gas levels to watch
At the moment, Natural Gas prices are advancing 24.65% at $2.619 and faces the next hurdle at $2.789 (2020 high Sep.29) seconded by $2.905 (monthly high Nov.5 2019) and finally $2.908 (monthly high Feb.26 2019). On the downside, a break below $2.320 (high Sep.24) would expose $1.934 (200-day SMA) and then $1.795 (monthly low Sep.21).
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