MTECHTIPS;-Natural Gas Price Fundamental Daily Forecast

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MTECHTIPS;-Natural Gas Price Fundamental Daily Forecast

MTECHTIPS-Natural gas futures are trading slightly better early Friday after finishing lower yesterday following the release of a government report that showed a bigger-than-expected storage build. The main trend is down according to the daily swing chart. The market is also trading on the weak side of several technical entrancement zones. This is creating the downside momentum that could lead to a challenge of the next support levels at $2.751, $2.703 and $2.688. At 0845 GMT, October Natural Gas futures are trading $2.777, up $0.005 or +0.18%. According to the U.S. Energy Information Administration, U.S. natural gas in storage increased by 63 Bcf to 2.568 Tcf for the week-ended August 31. The build was slightly more than the consensus calling for a 60-Bcf addition. The injection was also more than the 60-Bcf build reported during the corresponding week in 2017 but less than the five-year average addition of 65 Bcf, according to EIA data. As a result, stocks were 643 Bcf, or 20%, less than the year-ago level of 3.211 Tcf, and 590 Bcf, or 19%, less than the five-year average of 3.158 Tcf. Front month futures have fallen about 18 cents over the past two weeks despite low storage inventory. The move has been fueled by generally cooler temperatures and record production levels

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