US natural gas prices remain near a two-week high on Thursday due to increased supplies to export LNG plants, lower daily production and an expected rise in heating demand because of colder weather in the coming weeks. Although temperatures are predicted to decline by the end of February, gas prices are holding in the positive zone without sharp fluctuations.
According to LSEG, average gas production in the 48 continental United States rose to 105.9 billion cubic feet per day in February, up from 102.7 bcfd in January, when extreme cold weather resulted in frozen wells and reduced output. However, another drop in temperatures caused daily production to fall by 2.8 bcfd over the past six days, reaching a two-week low of 104.0 bcfd on Tuesday.
Meteorologists forecast that temperatures will remain below the seasonal norm through February 23. Consequently, total natural gas demand, including exports, will rise from 135.5 bcfd this week to 142.0 bcfd next week.
Liquefied natural gas (LNG) exports from the US are also on the rise. The country retains its leadership in the global supply of raw materials, leaving Australia and Qatar behind. High prices and export disruptions amid geopolitical tensions contribute to this.
From a technical perspective, natural gas prices are forming a new uptrend on H4 after breaking the short-term downtrend. The price is heading towards the previously broken support level of the senior uptrend, which was relevant for about three months and was broken at the end of this January. The Bulls Power indicator (standard values) is still in the positive zone, confirming the dominance of buying activity and signaling a possible continuation of growth.
Signal:
The short-term outlook for natural gas suggests buying.
The target is at the level of 4.060.
Part of the profit should be taken near the level of 3.835.
A stop-loss could be placed at the level of 3.355.
The bullish trend is short-term, so a trading volume should not exceed 2% of your balance.
