Natural Gas Futures Rise on Hurricane Shut-ins, But Downtrend Remains
November natural gas futures closed higher on Friday, with the main trend still down according to FXEmpire’s analysis. The price settled just above a key support cluster at $3.216 to $3.210, signaling short-term resilience. However, a break above $3.395 would shift the trend to bullish, while a drop below $2.912 could reinforce the bearish pattern, targeting $2.902 and $2.896, FXEmpire reported.
Hurricane Impact and Supply Concerns
Despite this, analysts noted that the storm’s effect on prices may be limited. “Storms can boost prices by cutting output, but they are more likely to reduce demand by shutting LNG export plants and power infrastructure,” the report stated.
Storage Levels and Winter Outlook
US natural gas inventories rose by 85 billion cubic feet in the week ending October 2, reaching 3,500 billion cubic feet, according to the Energy Information Administration (EIA) cited by Breakingthenews.net. The level remains 68 billion cubic feet above the five-year average, with end-of-October projections at a decade-high. East Daley Analytics warned that a mild winter, driven by a strong El Niño pattern, could create downside pressure for 2026-27 prices, forecasting a supply-demand surplus of 1.9 Bcf/d.
Market Dynamics and Price Targets
The minor trend remains upward, with a new high at $3.298, but the broader swing chart suggests a rally within a bearish framework. Support levels include $3.216–$3.210, $3.154–$3.146, and the 50-day moving average at $3.045. On the upside, targets are set at $3.264, $3.291, and $3.350. Short-covering activity, rather than aggressive buying, has driven recent gains, FXEmpire noted.
What’s Next for the Market?
The restart of Gulf of Mexico production will reset supply conditions, but current storage levels and weather forecasts suggest limited upward momentum. Analysts at LSEG predict gas output in the Lower 48 states could drop to a four-month low of 108.4 bcfd, while demand is expected to fluctuate with seasonal shifts.
What Caused Recent Rise in Natural Gas Prices
What caused the recent rise in natural gas prices? How do storage levels affect prices? Current inventories are 68 billion cubic feet above the five-year average, with projections pointing to record-high levels by October, as reported by Breakingthenews.net. What are the key price levels to watch? The $3.395 threshold is critical for a trend reversal, while $2.912 remains a key downside target, FXEmpire said.
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