Natural Gas Spot Prices (NATURAL GAS CFDS) rebounded in recent trading at intraday levels, to post daily gains to the time of this writing of 2.89%. It settled at a price of $4.715 per million British thermal units, after falling during Friday’s session to -2.22%. Over the past week, the price has risen 1.44%, having recorded its highest price at 5.056, but has rebounded to pare its gains to close its week at a price of $4.582 per million. British thermal units.
Global oil and natural gas prices fell on Friday as sanctions imposed by the United States and its allies barred Russian energy exports.
British and Dutch natural gas futures fell as Russian natural gas shipments to Europe increased. Mixed signals were also sent after reports emerged that the Russian government was open to talks with Ukraine. The seriousness of this possibility was not immediately clear, as North American Treaty Organization leaders said they would deploy additional military forces to members of the Eastern Alliance.
Russian flows via Ukraine rose 38% on Thursday as panic swept through the market and sent prices soaring. It was expected to rise another 24% on Friday, when Russian forces entered the Ukrainian capital. Shipments of Russian gas via Poland via the Yamal-Europe pipeline were also booked for auction on Friday, to Germany for the first time in months.
The increased flows also mean Europe’s reliance on Russia to meet gas demand and boost Ukraine’s role as a fuel pipeline to the continent. About 20% of Russian gas consumed by Europe passed through Ukraine last year.
Leaders of U.S. oil and natural gas producers pledged Thursday to support Ukraine in the face of Russia’s unprovoked invasion.
Technically, the price is confined to a narrow trading range in an effort to gain positive momentum that could help it recover and come back up. This is in light of the dominance of the main medium term uptrend along a slope line as seen in the attached chart for one period (daily) with the positive pressure continuing in its trades above above its simple moving average for the previous 50 days. It is in addition to this that we notice the influx of positive signals on the RSI indicators.
Therefore, we expect Natural Gas to rise in its next trades, as long as the 4.214 support level remains, especially in case it breaks through the current resistance 4.954, to target the resistance level 5.710 after that. .