Natural gas prices have managed to stop its previous modest losses and regained its strength around $1.8760 mark. However, the reason behind this upward performance could be attributed to market expectations of increased demand.

Despite concerns about economic growth, particularly regarding the manufacturing sector, there is anticipation of higher natural gas usage, especially in industries.

Furthermore, the ongoing geopolitical tensions in certain regions, such as the Middle East, could disrupt supply chains, leading to increased demand for natural gas as an alternative energy source. This can also boosted the Natural gas prices.

Federal Reserve Interest Rate Cut Stance and US Economic Data Impact

On the US front, the Federal Reserve’s decisions about interest rates and US economic data have a big impact on natural gas prices.

There’s a 52% chance the Fed might cut rates by 0.25% in June to help the economy. However, the lower rates could boost economic activity and increase natural gas demand.

But there are worries about inflation because the core inflation rate recently hit a three-year low. Any surprises in interest rate decisions or economic data could affect natural gas prices.

Government Change in Niger and its Impact on Natural Gas

In other news, the recent government change in Niger and its exit from the Economic Community of West African States (ECOWAS) could potentially disrupt vital gas pipeline projects, impacting natural gas markets.

Niger, with its large natural gas reserves, plays a crucial role in regional energy infrastructure projects.

However, political instability and policy changes could delay or halt these projects, affecting both supply and demand dynamics. Investors may become cautious amidst uncertainty, leading to fluctuations in natural gas prices.

Geopolitical Issues and their Impact on Natural Gas

On the geopolitical front, the ongoing Israel-Gaza conflict can have a significant impact on natural gas prices as the escalation of tensions in the region has raised concerns about supply disruptions.

Moreover, geopolitical instability can lead to uncertainty in the market, prompting investors to seek safe-haven assets like natural gas.

Natural Gas Price Forecast: Technical Outlook

On March 01, Natural Gas spotlights a technical landscape ripe for analysis. Currently priced at $1.08710, it remains unchanged in the latest session. The 4-hour chart delineates crucial price thresholds, with a pivot point at $1.8646 indicating a potential axis for movement.

Resistance levels are pegged at $1.9308, $1.9895, and $2.0329, suggesting ceilings for upward trends. Conversely, support is found at $1.8006, extending down to $1.7267 and $1.6801, marking zones where price dips may find a floor.

The Relative Strength Index (RSI) reads at 54, hinting at a balanced momentum without skewing towards overbought or oversold territories. The 50-Day Exponential Moving Average (EMA) at $1.8035 underpins a positive outlook, reinforcing a supportive backdrop for buyers.

The trading signal emerges from the alignment of the upward channel and the 50 EMA above the $1.8645 level, collectively advocating for a bullish inclination. As such, the stance on Natural Gas is bullish, provided it sustains above the pivot point of $1.8646.