Natural Gas News: Will Bullish EIA Report Push Prices to $3.647 Today?

Futures Advance on Technical Strength and Colder Weather Forecasts

U.S. natural gas futures climbed higher on Thursday, bolstered by technical momentum and expectations of colder mid-January weather. Prices breached key resistance levels during the prior session, with the 200-day moving average at $3.366 and the 50% pivot level at $3.444 now serving as potential support.

At 15:14 GMT, Natural Gas Futures are trading $3.485, up $0.111 or +3.29%.

Technical Outlook Supports Further Gains

Natural gas futures have established a bullish footing above critical technical markers. The 200-day moving average at $3.366 has become a key support level, while resistance stands at $3.559. Should prices break above $3.637 to $3.647, a stronger rally may follow. On the downside, a failure to hold above $3.366 could trigger a retreat to a support cluster between $3.118 and $3.093, suggesting caution for traders.

Colder January Forecasts Drive Sentiment

Market sentiment has turned increasingly bullish as forecasts point to colder weather patterns developing in January. Early Thursday trading reflected heightened anticipation of rising demand, driven by expectations for frostier conditions across major consuming regions. According to EBW Analytics Group, concerns about potential freeze-offs and physical market disruptions have amplified market jitters, especially given historical precedence for such events.

NatGasWeather reported a frosty system impacting the Midwest, with high temperatures in the 20s-30s and lows in the 10s-20s. Demand is expected to intensify over the weekend before moderating again early next week, offering a near-term uptick in consumption.

Bullish EIA Storage Report Anticipated

The Energy Information Administration’s (EIA) storage report is expected to further support the bullish narrative. Surveys indicate a projected storage draw of 122 to 130 Bcf, with a consensus around -130 Bcf. This would significantly outpace the five-year average withdrawal of -92 Bcf, reflecting stronger demand in recent weeks.

Market Forecast: Bullish Bias with EIA Impact

The combination of colder January forecasts and supportive technical levels points to a bullish outlook for natural gas futures in the short term. A larger-than-expected storage withdrawal could trigger further upside, pushing prices toward a breakout above $3.647. However, a smaller draw near the lower end of projections could cap gains and shift the market focus back to technical support at $3.366. Traders should closely monitor the storage report and subsequent price reactions.

More Information in our Economic Calendar.