Natural Gas Price Hits Highest Level Since January 2023
The XNG/USD chart today shows that natural gas prices have surpassed the December 2024 peak, breaking through the key psychological level of $4.000/MMBtu. Since early February, prices have surged by over 20%.
Why Is Natural Gas Price Rising?
According to The Wall Street Journal, the bullish sentiment is driven by:
Weather models confirming forecasts of a significant cold spell.
LNG exports remaining at record highs.
Additionally, US gas exports may increase further after President Trump lifted the pause imposed by the Biden administration on new LNG export projects. Bloomberg reports that Trumps administration is close to approving its first LNG export project.
Technical Analysis of XNG/USD
The price movements are forming an upward channel (marked in blue) on the chart:
Prices are currently near the upper boundary of this channel.
The RSI indicator is in the overbought zone.
The price briefly exceeded the $4.000/MMBtu psychological level.
Buyers may look to secure profits after the recent sharp gains.
Given these factors, traders may anticipate a potential pullback, whichif it occurscould bring natural gas prices back towards the channels median level.
Read more: https://fxopen.com/blog/en/oa-natural-gas-price-hits-highest-level-since-january-2023/
Text source: Forex Trading Blog
