NATURAL GAS BULLISH OUTLOOKNatural gas futures surged to over $3 per mmBtu, a seven-month high, driven by increased demand for indoor heating and cooling. Speculation and reports of pipeline issues causing production slowdowns contributed to the price rise. The September gas contract on the NYMEX Henry Hub reached $2.95 per mmBtu, up 6.2% for the day, briefly hitting $3.018.
Prior to this, gas prices had lingered around the mid-$2 range due to higher production and milder weather. Gelber & Associates, an energy advisory in Houston, warned of maintenance problems in NEXUS and REX pipelines, potentially impacting their daily gas delivery capacities.
The NEXUS pipeline moves 1.5 bcf of gas daily from Ohio to Michigan, while the 1,679-mile REX pipeline runs from the Colorado Rockies to Ohio. Analysts anticipate reduced Northeastern gas flows affecting production.
MACD and RSI are confirming the bullish anticipation, with probable levels of resistance at 3.227, while as a pivot point might be considered 2.757 and from there the price might face support at 2.648
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