Natural Gas News: Futures Recover as Hurricane Risk Counters Warm Forecast
Natural gas futures are showing a slight recovery after a storage-driven break, influenced by hurricane risk in the Gulf causing production shut-ins, which counters a warm weather forecast and ample storage. The market is exhibiting technical signs of a potential rebound but faces significant resistance levels.
Why it matters
This impacts energy markets, potentially affecting consumer prices and industrial costs for natural gas, and highlights the volatility of commodity markets due to weather events and supply/demand dynamics.
The Hurricane Rally Is Not CleanNovember natural gas futures are higher Friday after Thursday’s storage-driven break, but this is not a clean weather turnaround. The market has a hurricane in the Gulf, some production shut-ins and a bounce off the 50-day moving average. It also has a warm forecast, enough gas in storage and a storm that can take demand away along with supply.Buyers are trying to work the market back into Thursday’s failed rally. They have not done it yet. The $3.210 to $3.216 area is the first test. November natural gas futures traded as high as $3.236 Friday and could not stay above that zone. That is where the sellers showed up Thursday.At 16:20 GMT, November natural gas futures are trading $3.206, up $0.038 or +1.20%.
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