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EIA cuts natural gas price outlook to $2.87 in Q3
The revision is tied to higher US production and inventories, which could lift stockpiles to the largest level in a decade, with Freeport LNG maintenance also weighing on demand.
The US Energy Information Administration lowered its forecast for the average natural gas price in the third quarter to $2.87 per million BTU, 50 cents below its prior estimate, citing increased domestic production and rising inventories, which could lead to the largest stockpile in a decade ahead of the heating season.
The report also pointed to planned maintenance at the Freeport LNG export terminal as an additional factor that may tighten the supply-demand balance by reducing gas used for liquefaction, while noting that global LNG trade has already been disrupted by shipping issues in the Strait of Hormuz in July.
On the technical side, Action Forex said a descending wedge has formed on the XNGUSD (H4) chart, with an upside break occurring on 10 August after a gap on below-average volume, a combination the outlet said calls into question the breakout’s conviction.
Action Forex added that price has since moved into consolidation between $2.765, marked as the point of control, and $2.810, and it highlighted key levels at $2.990 for resistance, $2.700 for a potential downside shift, and $2.630 as the pattern’s apex if the move reverses.
Latest closeNat gas $2.788 ▲0.8%