Natural gas prices moved lower, sliding in a down trend, after prices broke through support levels. Warmer than normal weather is forecast to cover most of the United States for the next 8-14 days which would reduce heating demand and weigh on natural gas prices. The weather offset the larger than expected draw in inventories. Prices are targeting support near an upward sloping trend line that comes in near 2.52. Resistance is seen near the 10-day moving average at 2.83.
Gas Drew More than Expected
Working gas in storage was 3,626 Bcf as of Friday, December 8, 2017, according to EIA estimates. This represents a net decrease of 69 Bcf from the previous week. Expectations were for a 60 Bcf deline. Stocks were 201 Bcf less than last year at this time and 27 Bcf below the five-year average of 3,653 Bcf. At 3,626 Bcf, total working gas is within the five-year historical range.