Natural Gas Price News: XNG/USD justifies demand concerns to print four-day uptrend near $2.80
- Natural Gas Price pares intraday loss during four-day winning streak around weekly top.
- Hopes of more energy demand due to weather forecasts, tropical storm Idalia and supply crunch fears fuel XNG/USD price.
- Softer US Dollar, cautious optimism also underpin XNG/USD run-up.
- Risk catalysts eyed for clear directions, US Dollar moves will be crucial to watch.
Natural Gas Price (XNG/USD) remains firmer for the fourth consecutive day around $2.80 amid early Tuesday morning in Europe, despite the late Monday’s retreat from a fortnight high.
The XNG/USD pair’s latest run-up could be linked to the likely improvement in the energy demand amid fierce weather forecasts in the US, as well as expectations of witnessing a supply crunch due to tropical storm Idalia. Adding strength to the XNG/USD upside could be the fears of witnessing a strike at the US energy major Chevron's Liquefied Natural Gas (LNG) export plants in Australia.
Elsewhere, Reuters cites the data provider Refinitiv to mention that average gas output in the lower 48 US states eased to 101.7 billion cubic feet per day (bcfd) so far in August, down from 101.8 bcfd in July. That compares with a monthly record of 102.2 bcfd in May.
It should be noted that the recent hopes of witnessing more stimulus from China and a pullback in the US Dollar Index (DXY) also propel the Natural Gas Price. China’s halving of the stamp duty on stocks trading joined a Wall Street Journal (WSJ) piece suggesting Chinese Communist Party Chairman Xi Jinping’s indirect push for stimulus to favor market sentiment and offered additional negatives for the US Dollar Index.
Against this backdrop, Wall Street closed on the green side for the second consecutive day while the US 10-year Treasury bond yields dropped three basis points (bps) to 4.20% and the two-year counterpart declined half a percent to 5.5% at the latest. That said, the US 10-year Treasury bond yields remain pressured near 4.19% by the press time whereas the S&P 500 Futures lack clear directions as we write.
Looking ahead, headlines about the energy market and the aforementioned risk catalysts Will direct the Natural Gas Price.
Technical analysis
A clear upside break of a three-week-old previous resistance line, now support around $2.60, keeps the Natural Gas buyers hopeful.