Natural Gas News: Can Bullish Momentum Hold Above the $2.252 Pivot?

Natural Gas Futures End Weekl Higher

Natural gas futures closed the week up $0.030 or +1.32%, settling at $2.305 per MMBtu. Prices dropped on Friday as traders took profits following a four-day rally, but overall sentiment remained bullish. Hurricane Francine disrupted production in the Gulf of Mexico, while storage data showed tighter supply than expected, keeping a floor under prices. This marked the second consecutive weekly gain for natural gas.

Hurricane Francine Disrupts Gulf Production

Hurricane Francine made landfall in Louisiana, causing disruptions to natural gas production and LNG exports in the Gulf of Mexico. Power outages and cooler temperatures in the southern U.S. reduced demand slightly, but the market remained focused on the supply side. The production cuts helped maintain upward pressure on prices for most of the week. Traders are watching how long these disruptions will last, as they continue to provide support to the market​​.

EIA Storage Report Shows Tightening Supply

The U.S. Energy Information Administration (EIA) reported a storage build of 40 Bcf for the week ending September 6, below market expectations of 46-50 Bcf​. This brings total storage to 3,387 Bcf, which is 198 Bcf above last year and 296 Bcf higher than the five-year average. Despite elevated storage, the smaller-than-expected injection signals tighter supply. With production dipping below 100 Bcf per day, traders see the narrowing surplus as a key factor keeping prices supported​​.

Key Levels to Watch

The main trend is down. A trade through the main top at $2.482 will turn the weekly trend up, with a long-term target of $2.757. The market closed above the weekly pivot at $2.252, making it support heading into the new week. Holding above this pivot will signal buying strength, keeping support firm. A failure to hold above this level could trigger renewed selling pressure, with further support at the main bottom of $2.021.

Market Forecast: Cautiously Bullish

The outlook remains cautiously bullish. Supply disruptions from Hurricane Francine and tightening storage should continue to support prices. However, high storage levels and mild weather could limit upside potential. A break through resistance at $2.482 will shift the weekly trend to up, targeting $2.757. On the downside, a move below $2.252 may signal weakness, but production cuts should prevent a major decline. Traders will be closely watching storage data and weather forecasts to gauge the next move.