US natural gas price tumbled down!

US natural gas price tumbled down!

US natural gas price tumbled down!

US natural gas price tumbled down!

US natural gas price tumbled below the $6, a level not seen since March, as investors reacted to fresh EIA data showing a larger-than-expected storage build. The latest EIA report showed utilities added 82 billion cubic feet (bcf) of gas to storage last week, well above analysts' expectations of 74 bcf and a five-year average increase of 73 bcf. Prices are now roughly 40% below their June peak of $9.7 as the closure of Freeport's export plant in Texas made more fuel available domestically. The first resistance to be tested is $5.81 and first support on a decline is $5.20 Level. 

The dollar index edged up to around 104.9 on Friday and was set to gain for the week, underpinned by the Federal Reserve’s firm hawkish stance and escalating risks of a global recession. Fed policymakers indicated this week a strong commitment to bringing down inflation even at the risk of a recession, signaling another 75 basis point rate increase in July. The dollar also benefited at the expense of commodity currencies and other risk assets from fears of a global downturn, as the odds are extremely low that the US slides into recession while the rest of the world does not. Meanwhile, the greenback faced pressure on Thursday from data showing weaker US consumer spending in May, in the latest sign of slowing economic growth. The Fed-preferred core PCE price index also showed signs of easing prices in May, but remained at elevated levels.

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01 July 2022 14:10

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