Spot natural gas prices (CFDS ON NATURAL GAS) stabilized at an increase in its recent trading at the intraday levels, to achieve daily gains until the moment of writing this report, by 0.34%. The price settled $6.888 per million British thermal units, as it rose in yesterday’s trading by 0.69% .
Natural gas prices soared in Europe after Russia stopped sending gas supplies to Poland, adding to already escalating geopolitical tensions and the first time Moscow has done so since it began invading Ukraine. This is what Russia demanded of “unfriendly countries”.
Poland’s gas reserves are 80%, but Bulgaria gets nearly 90% of its gas from Russia, and its only refinery is owned by a Russian company. Haley noted that the EU may now have emergency situations to help its affected members, but the bloc faces difficult times ahead.
However, the rally appears to have stalled early on Wednesday, as Asian markets appear to be more concerned about slowing demand from China after expanding lockdowns to combat the novel coronavirus outbreak.
News reports said that the capital, Beijing, imposed closures and expanded testing in an attempt to contain the outbreak of the epidemic in the capital. The shutdown of Shanghai, the country’s largest city and a major financial and commercial hub, has exacerbated concerns about China’s economic growth prospects.
Technically, the price is rising along a major bullish slope line in the medium term, supported by its continuous trading above its simple moving average for the previous 50 days, as shown in the attached chart for a daily time period. After it reached very oversold areas, we should start to see positive signals from it, which doubles the positive pressures on its upcoming trading.
Therefore, we expect more rise for natural gas during its upcoming trading, especially in case it breaches the current resistance 7.078, to target the pivotal resistance level 8.054.