Natural Gas News: Bearish Sentiment Builds as Robust Storage Weighs on Futures

Futures Steady After Early Decline as Traders Eye Key Technical Levels

Natural gas futures steadied Friday after an early drop to $2.688, with prices hovering near a critical technical pivot at $2.825. This level could define the short-term trend, with market participants closely monitoring movements for signals of buyer or seller dominance.

At 16:18 GMT, Natural Gas futures are trading $2.804, up $0.019 or +0.68%.

Key Technical Levels in Focus

Prices stabilizing above $2.825 would suggest renewed buying interest, potentially driving futures toward a significant resistance cluster between $3.043 and $3.404 in the coming week. Conversely, a sustained dip below $2.825 could indicate strong selling pressure, with downside momentum possibly targeting the support zone at $2.585 to $2.514.

Storage Levels Weigh on Sentiment

Fundamentally, storage data continues to apply bearish pressure. The Energy Information Administration (EIA) reported a 42 Bcf injection for the week ending November 8, pushing total working gas in storage to 3,974 Bcf. This figure is 158 Bcf higher than last year’s levels and 228 Bcf above the five-year average, firmly above the historical range. The robust inventory is a headwind for prices, especially in the absence of weather-driven demand spikes.

Weather Outlook Signals Weak Demand

Weather forecasts through November 20 predict mild conditions across much of the U.S., with high temperatures ranging from the 60s to 80s in the southern and eastern regions. Only the western and northern U.S. will see cooler temperatures, with highs in the 40s to 60s accompanied by rain and snow. This mild outlook translates to light demand for natural gas, further dampening market sentiment.

Market Forecast: Bearish Short-Term Outlook

Given the technical and fundamental setup, the near-term outlook for natural gas prices leans bearish. With substantial storage levels and limited demand due to mild weather, prices face pressure to retest lower support zones unless a significant catalyst, such as a cold snap or unexpected supply disruption, emerges. Traders will remain focused on the $2.825 pivot for cues on the next directional move.