Natural Gas Prices: Futures Contract Widens Upward and Aims for Extension

Natural Gas Prices: Futures Contract Widens Upward and Aims for Extension
Natural Gas Prices: Futures Contract Widens Upward and Aims for Extension
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The prices of the natural gas futures, quoted in dollars on the Nymex, closed the session on Tuesday 13 September with a gain of + 1.79% at 8,397. The market recovered positions starting from the evening after spending most of the session in negative territory, also hitting lows of 8,155.

The overall recovery, which is rising from the relative lows of 7 September (7,751), has now exceeded 9% of extension, and is laying the foundations for a further continuation of the rise in the coming days.

Norway Against Gas Roof

Norwegian Prime Minister Jonas Gahr Stoere will meet with gas producers on Thursday to discuss long-term supply contracts, which could help stabilize gas sales prices in Europe.

The minister himself said yesterday in an interview with the country’s public broadcaster NRK. “It is not in Norway’s interest to have the current instability. I would much prefer to see those prices stabilize, preferably at a lower level, ”he added. Stoere, however, reiterated that setting a price cap on gas, as suggested by some European buyers, could have a negative impact on supplies and would be a “bad choice”.

Expectations for the meeting on 30

In the meantime, EU energy ministers will seek to approve new block-level measures to reduce the surge in gas and electricity prices at an emergency summit convened for September 30. EU diplomats say there is broad consensus to impose a ceiling on revenues for producers of non-gas electricity, as well as plans to impose cuts in citizens’ consumption, but countries are divided specifically regarding the gas roof. Norway has become the main supplier to the continent since Russia cut deliveries, with Moscow continuing to blame unspecified “technical problems” caused by Western sanctions.

Equinor, Shell, Wintershall Dea, TotalEnergies, Vaar Energi and Norwegian state-owned ConocoPhillips are now the leading gas producers in Norway.

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Technical references for the future Natural Gas

On the 30-minute bar chart we can see how the bullish price action has exhausted itself, at least for the moment, in contact with the area between 8.450 / 8.460, which acts as an intermediate resistance. Supports formed at 8,190 / 8,210 and 8,010 / 8,040 which will constitute, particularly during the session on Wednesday, potential points for restarting the rise in the event of retreats.

The projections are bullish up to 8,683 / 693 and 8,800. The bullish scenario would be canceled by the eventual breakdown of the second support, through a close on the 30-minute chart below 8,010.

The article is in Italian

Tags: Natural Gas Prices Futures Contract Widens Upward Aims Extension

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