Natural Gas News: Hurricane Milton Impact, UK LNG Demand Surge; 50% Fibonacci Support

Natural Gas Climbs with 50% Fibonacci Support

Analyzing the daily chart for natural gas (NG), prices have rebounded 0.86%, reaching $2.93. This recovery gains significance around the $2.62 support level, reinforced by a 50% Fibonacci retracement.

The presence of a hammer candlestick pattern following a series of bearish candles signals potential bullish momentum.

Should prices break above the initial resistance at $2.71, further gains could target $2.83. The 50-day Exponential Moving Average (EMA) at $2.48 and the 200-day EMA at $2.42 offer additional support for an upward trend.

Remaining above the pivot at $2.68 maintains the bullish outlook, while a decline below this level could indicate a potential downturn.

Natural Gas Prices Rise Amid Middle East Tensions

Natural Gas prices have rebounded from earlier losses, hitting an intraday high of $2.93, driven by geopolitical tensions in the Middle East and concerns over potential supply disruptions. The bullish sentiment is also bolstered by a weakened US dollar, making natural gas cheaper for international buyers.

However, stronger-than-expected US inflation data and uncertainty over Federal Reserve rate cuts could introduce volatility, capping further gains.

US Natural Gas Futures Dip Amid Hurricane Milton’s Impact

Despite the recent surge, US natural gas futures slipped nearly 2% to a two-week low as demand forecasts suggested a drop in consumption due to Hurricane Milton.

The storm’s impact left millions without power across Florida, reducing immediate demand for natural gas from power generators.

UK Natural Gas Prices Surge on Winter Demand and LNG Imports

UK natural gas prices for the NBP month-ahead contract climbed to €39.32/MWh, surpassing the Dutch TTF contract’s €38.59/MWh. The premium reflects growing winter demand and increased LNG imports.

UK gas consumption has surged compared to last year, supported by robust import capacity.

Short-Term Market Outlook: Bullish

Natural gas prices remain bullish, supported by the 50% Fibonacci level and a favorable technical setup. Geopolitical tensions in the Middle East and heightened winter demand in Europe add upward pressure.

Breaking above $2.71 could push prices higher, targeting the $2.83 resistance level.