Our expectations suggest that natural gas will rise during its upcoming trading.
Spot natural gas prices (CFDS ON NATURAL GAS) settled on a rise in their recent trading at intraday levels, to record slight daily losses until the moment of writing this report, by -0.32%. It settled at the price of $8.670 per million British thermal units, after rising sharply during trading. Yesterday, it increased by 6.10%.
Denmark’s largest energy company said Russia cut off its gas supplies on Wednesday because it refused to pay in rubles, the latest escalation over European energy amid the war in Ukraine. Russia had previously halted natural gas supplies to Finland, Poland, and Bulgaria for refusing to request payment in rubles, and on Tuesday it shut down supplies to the Netherlands.
The Danish Energy Agency said that in the first 18 weeks of 2022 Russian gas accounted for nearly 25% of gas consumption in the European Union. The agency said Denmark’s loss of supplies would not have immediate consequences.
Before that, European Union leaders agreed on Tuesday to cut about 90% of all Russian oil imports over the next six months. The 27-nation conglomerate depends on Russia for 25% of its crude oil and 40% of its natural gas.
Meanwhile, the United States exported 7.29 million tons of liquefied natural gas last month, the second highest level ever, with sales expanding to Europe and South America. The United States is on track to become the world’s largest exporter of liquefied natural gas this year, with Australia and Qatar leading as producers work to boost liquefaction capacity.
Technically, the price regained its activity as a result of the stability of the support level 8.054, which gained it some positive momentum. It is prepared now to attack the pivotal resistance level 8.870, in complete control of the main bullish trend in the medium term along a slope line. The positive pressure is continuing to trade above its 50-day simple moving average previously. We notice the influx of negative signals on the RSI indicators, which might curb the commodity’s gains in its upcoming trading.
Therefore, our expectations suggest that natural gas will rise during its upcoming trading, but on condition that it first breach the pivotal resistance level 8.870, to confirm its intention to continue rising, to target the resistance level 9.550.