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Natural Gas hits 4-month high

FXStreet (Mumbai) - Natural Gas strengthened for the seventh consecutive session today as forecasts for an early-winter chill have traders expecting rising demand for the fuel.

The Natural Gas front month contract is trading 2.16% higher at USD 4.218/mmbtu, compared to the previous session’s close of USD 4.129. Both Commodity Weather Group LLC and WeatherBELL Analytics LLC released long-term forecasts this week showing a notably higher risk of a cold weather in December.

Moreover, everyone was fearing a supply glut till last week. However, the latest weather forecasts have turned the tables at least for the short-term. Buyers have started rushing into the gas market on fears of a sequel to last winter's polar vortex which had pushed prices to a five-year high.

Natural Gas Technical Levels

Natural Gas has an immediate support located at 4.184, under which the prices can fall to 4.101 levels. On the other hand, prices can rise to 4.398 , if the immediate resistance at 4.314 is breached.

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