Natural gas prices have continued to drift lower as warmer-than-usual US winter temperatures reduce heating fuel-demand.
 
According to the US Energy Department, around 51% of US households consume natural gas for heating. On Wednesday the National Oceanic and Atmospheric Administration (NOAA) said that US temperatures were 44.3 degrees Fahrenheit, 1.8 degrees above the 100-year average, in November. It also said that weather forecasts over the next two weeks are expected to be above normal across the densely populated eastern half. On Thursday, the Energy Information Administration will unveil its weekly inventory report at 3:30pm (London time). Analysts surveyed by Dow Jones Newswires said that the report will show the volume of working gas in storage falling by 12 billion cubic feet, far below the five-year average of 66 billion cubic feet. Stockpile estimates in a Bloomberg survey ranged from an increase of 1 billion to a decline of 42 billion cubic feet.
 
Natural gas on Thursday traded at $3.45 MMBtu, after failing to repeatedly close above the $3.50 MMBtu level for the past two days. A close below $3.40 could see natural gas test the $3.28 MMBtu level. It should be noted that the standard Moving Average Convergence Divergence (MACD) indicator illustrates a bearish crossover, which usually suggests further downside potential.