Natural Gas price have been gaining momentum and reaching a peak of $1.795, driven by various factors, including rising geopolitical tensions. As we all are well aware that the geopolitical instability tends to raise NG prices due to fears of disruptions in the supply chain.

Despite talks of a ceasefire in Israel-Palestine conflict, the situation in Gaza remains on the card. Besides this, the ongoing military actions by the US and UK in Yemen have put some pressure on the sentiment, further boosting NG prices. Apart from this, Qatar’s gas project attracts global investors, which indicates positive prospects for Natural Gas prices due to increased production and stable investments.

Qatar’s Gas Expansion Spurs Optimism for Natural Gas Prices

Qatar’s gas project is attracting attention from investors worldwide, while Nigeria’s efforts are not getting as much notice. Qatar intends to increase its LNG production significantly by tapping into new reserves in the North Field, adding 16 million metric tons annually by 2030.

Qatar Energy has swiftly begun engineering work for this expansion. ExxonMobil’s $30 billion investment in Qatar’s gas projects, developed through a strong partnership since the 1990s, includes joint ventures like LNG vessels and the US-based Golden Pass Terminal. This increased production is positive for natural gas availability and could contribute to more stable prices in the future.

Therefore, this is positive news for Natural Gas (NG) prices as Qatar’s expansion plans indicate increased supply, potentially stabilizing or even lowering prices due to greater availability in the market.

Fed Decisions and Geopolitical Tensions Fuel Volatility in Natural Gas Prices

Furthermore, the US Federal Reserve’s choices on interest rates and global tensions, like the Israel-Gaza conflict, affect Natural Gas prices. With the Fed being careful about rate cuts and lots of uncertainties worldwide, Natural Gas prices are changing a lot. This shows how economic policies, world events, and Natural Gas prices are all connected. Chairman Jerome Powell said they want to make sure inflation stays around 2% before thinking about cutting rates.

Meanwhile, the minutes from the Federal Open Market Committee (FOMC) meeting expressed concerns about the potential negative consequences of decreasing interest rates rapidly. They prefer to take their time and carefully assess the situation before making significant decisions regarding interest rates.

Natural Gas Price Forecast: Technical Outlook

Natural Gas prices climbed to $1.822, reflecting a 3.20% increase, spotlighting a bullish momentum in the energy sector. The pivot point at $1.778 acts as a critical juncture; prices above this level suggest a bullish outlook.

Resistance levels at $1.864, $1.937, and $1.990 are poised to test the market’s strength, potentially capping further gains. Conversely, support found at $1.680, $1.613, and $1.540 offers a safety net against downturns.

The RSI, positioned at 57, alongside a 50 EMA of $1.759, indicates a balanced market sentiment. The trend remains positive above the pivot, signaling continued investor confidence in Natural Gas’s trajectory.