Weather Models

November natural gas futures are holding above the 50-day moving average as cooler weather models encourage short-covering. FXCOINZ sees the rebound facing a significant test from strong Lower-48 output, ample storage and resistance near the next technical zones.

Natural gas futures recovered from Friday’s low as short-covering helped November reclaim the $3.00 area. Still, mild shoulder-season demand, elevated production and a comfortable storage cushion leave the broader market tilted toward sellers.

Natural gas futures found support from short covering as Texas and the Plains kept cooling demand alive. The broader setup remains pressured by strong production, cooler conditions across key regions and storage levels that continue to reassure sellers.

Natural gas prices enter a pivotal stretch with above-normal heat still supporting power burn across the central and eastern United States. Yet fading late-July temperature forecasts, storage concerns and El Niño-linked winter expectations continue to keep downside risks in focus.