Natural Gas News: Key Levels at $3.045 in Focus—Is a Breakout Near for Futures?

Futures Edge Higher with Cold Weather and Global Demand in Focus

Natural gas futures are putting in a mixed performance on Tuesday as traders set their sights on breaking key resistance levels.

Prices are testing last week’s high at $3.02, alongside the 50% Fibonacci retracement level at $3.044 and the 50-day moving average at $3.045. A successful breakout above these levels could shift the trend upward, targeting $3.136 to $3.168.

Conversely, a decline below the pivot support at $2.825 would signal a bearish shift.

At 12:12 GMT, Natural Gas futures are trading $2.958, down $0.015 or -0.50%.

Cold Weather Fuels Domestic Rally

Natural gas futures started the week strongly, bolstered by forecasts of colder weather in the U.S. that are expected to drive higher heating demand. Monday’s trading session saw gains in both futures and cash prices, as exploration and production (E&P) companies prepared to potentially ramp up supply.

Early-week weather systems brought rain and snow across the western and central U.S., with temperatures expected to drop further in the East later in the week. Analysts predict moderate demand for the coming days and potential bullish momentum if colder patterns emerge in early December.

European LNG Market Monitors Russian Supply Threats

In Europe, natural gas prices also climbed modestly as geopolitical tensions persisted. Austria’s OMV Group confirmed it would no longer receive contracted supplies from Russia’s Gazprom following an international arbitration ruling.

This marks the latest disruption in Russian gas supplies to Europe, where nations continue to diversify energy sources. Liquefied natural gas (LNG) imports have played a critical role in offsetting supply risks, as colder weather also begins to take hold across the continent.

China Boosts Winter Natural Gas Reserves

China, the world’s largest LNG importer, is ramping up preparations for winter by securing 4.7% more natural gas compared to last year. CNPC, the state energy giant, reported high LNG inventories and strong transmission capacity to ensure adequate heating supplies.

Major terminals sourcing LNG from Qatar and Australia are expected to sustain demand across key regions, including Beijing and the Yangtze River Delta.

Market Forecast: Bullish Near-Term Momentum

The outlook for natural gas futures remains cautiously bullish. Cold weather forecasts and global demand growth, particularly in China and Europe, support a potential upward move.

However, price action hinges on whether U.S. futures can breach the $3.045 resistance level. A failure to do so or a dip below $2.825 could shift momentum to the downside.

Traders will also closely watch for updated December weather models, which could solidify a bullish narrative if colder patterns materialize.