Fundamentals
Natural gas (XNGUSD) fell to approximately $3.9/MMBtu, the lowest in three weeks, after the EIA reported a larger-than-expected inventory increase. US utilities added 9 billion cubic feet of gas to storage for the week ending March 14, surpassing the forecast of 3 billion cubic feet. This marks the first stock increase since November 2024, helping to narrow the storage deficit. Gas stocks are currently 26.8% lower than a year ago and 10% below the five-year average. Meanwhile, LNG exports reached a record 15.7 bcfd in March, fueled by expanded operations at Venture Global’s Plaquemines LNG facility.
Looking ahead, temperatures are expected to remain near seasonal averages through early April. On the supply side, natural gas production in the Lower 48 states increased to 105.7 bcfd in March, surpassing the previous record of 105.1 bcfd set in February.
Technicals
Although the downward correction is ongoing, the long-term uptrend is still intact. If the price continues to decline, the next support level to watch is around 3.92, followed by 3.76. On the other hand, if the correction ends and the price rebounds, the next resistance level to test is around 4.30, with 4.60 as the next key level.
By María Agustina Patti, Financial Markets Strategist at Exness
Natural gas (XNGUSD) fell to approximately $3.9/MMBtu, the lowest in three weeks, after the EIA reported a larger-than-expected inventory increase. US utilities added 9 billion cubic feet of gas to storage for the week ending March 14, surpassing the forecast of 3 billion cubic feet. This marks the first stock increase since November 2024, helping to narrow the storage deficit. Gas stocks are currently 26.8% lower than a year ago and 10% below the five-year average. Meanwhile, LNG exports reached a record 15.7 bcfd in March, fueled by expanded operations at Venture Global’s Plaquemines LNG facility.
Looking ahead, temperatures are expected to remain near seasonal averages through early April. On the supply side, natural gas production in the Lower 48 states increased to 105.7 bcfd in March, surpassing the previous record of 105.1 bcfd set in February.
Technicals
Although the downward correction is ongoing, the long-term uptrend is still intact. If the price continues to decline, the next support level to watch is around 3.92, followed by 3.76. On the other hand, if the correction ends and the price rebounds, the next resistance level to test is around 4.30, with 4.60 as the next key level.
By María Agustina Patti, Financial Markets Strategist at Exness
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.