- The Henry Hub Natural Gas futures are declining for the second day in a row.
- Milder US weather has been undermining demand and weighing on prices.
- Tuesday’s daily chart is pointing to an uptrend with higher highs and higher lows.
Large swathes of the southern United States are experiencing hot and dry weather. The above-normal weather encompasses areas from Houston Texas to Portland, Oregon. The “Pacific Blob” is set to keep the mercury above average, but below the persistent heat experienced in 2015.
The warm wave comes after a cold snap and diminishes the demand for heating gas. Prices of natural gas – which have been on the rise last week – are declining to the lowest levels since October 28.
It is important to note that the Northeast continues experiencing colder weather, with advisories issued for nine states. Another wave of harsh weather may eventually engulf North America.
Natural Gas Price Today
At the time of writing, the Henry Hub Natural Gas futures for December 2019 have hit a low of $2.534, down from $2.56. This slide completes a climb down from the peak of $2.904 seen in early November.
Zooming out, NatGas prices remain in an uptrend, typical to the winter season. The swing high of $2.904 mentioned earlier is higher than the $2.88 high recorded in mid-October. The fresh low of $2.534 is above the $2.41 level recorded in early November, which in turn, is above $2.391 seen in late October.
On the other hand, momentum on the daily chart has turned negative, and futures slipped below the 50 and 100 Simple Moving Averages after dropping below the 200 SMA.
Additional levels to watch are $2.639, $2.751, $2.50, and $3.00.
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