Natural Gas in my view has defied logic with the fundamentals in the front part of November set to be neutral to slightly bearish. Due to the government shutdown, the CFTC has not been reporting positions since 9/23 - this leaves us a little blind to what I largely suspect is the reason for the run up (short covering). Fundamentally I believe we will see $5 this winter but I believed we were going to head down to test 3.965 before structurally heading up. Now the market is trading up on fear and short covering - which leaves me thinking that we may in fact be pushing up for a crash down in prices later. Monday broke the key levels of both 4.476 and 4.394 with the current trading at 4.335 in the afternoon session. 4.174 is likely the next stop - the traders are finally realizing just how warm November is….watch for 4.174 next. Bulls tried on Tuesday to bring Nat Gas back up to 4.394 but the destiny looks to be headed down. This week is likely a lot of balancing for positions before Thanksgiving holidays.
ER
Natural Gas Radar
2025-11-18 23:48
Table of Contents
Brian's Thoughts
Today's Update
Natural gas prices have recently shown volatility, driven by a mix of warmer weather forecasts and concerns over short covering. Despite expectations of a bearish trend, the market has edged up due to fears of colder weather potentially boosting demand. Current trading is hovering around $4.335, with key levels broken. Analysts anticipate a pullback towards $4.174, especially as traders reassess inventory levels and weather impacts. Keep an eye on upcoming forecasts, as they could sway market direction significantly.
Executive Summary
Total supply increased by 1.6 BCFD | Total demand increased by 4.5 BCFD | Market is undersupplied by 0.8 BCFD
Technical Analysis
Overall Technical Score (-5 to +5):
3
(Moderately Bullish)
Current Price:
$4.39
Signal:
Moderately Bullish
Moving Averages (9/20)
BULLISH
MA(9): $4.45
MA(20): $4.06
Current Price is 4.39, 9 day MA 4.45, 20 day MA 4.06
MACD (12, 26, 9)
BULLISH
MACD: 0.3174
Signal: 0.3122
Days since crossover: 21
MACD crossed the line 21 days ago and is in a bullish setup
RSI (14)
NEUTRAL
Value: 64.0
Category: NEUTRAL
RSI is 64.0 (note 70% is overbought and 30% is oversold)
Volume (vs 20d Avg)
LOWER
Current: 1,873
Avg (20d): 159,929
Ratio: 0.01
Volume is lower versus 20 day average
Stochastic (14, 3)
BEARISH CROSS
%K: 67.07
%D: 79.01
Stochastic %K: 67.07, %D: 79.01. Signal: bearish cross
ADX (14)
STRONG UPTREND
ADX: 41.89
+DI: 29.46
-DI: 10.27
ADX: 41.89 (+DI: 29.46, -DI: 10.27). Trend: strong uptrend
Williams %R (14)
NEUTRAL
Value: -32.93
Williams %R: -32.93 (neutral zone)
Bollinger Bands (20, 2)
ABOVE MIDDLE
Upper: 5.01
Middle: 4.06
Lower: 3.11
Price vs BBands (20, 2): above middle. Upper: 5.01, Middle: 4.06, Lower: 3.11
Fundamental Analysis
| Category | Current (BCFD) | Last Week | Last Year | 3 Yr Avg |
|---|---|---|---|---|
| Dry Production | 107.5 | 106.4 | 101.8 | 102.13 |
| LNG Imports | 0.0 | 0.0 | 0.1 | 0.1 |
| Canadian Imports | 6.3 | 5.8 | 5.9 | 5.03 |
| Total Supply | 113.8 | 112.2 | 107.8 | 106.53 |
| Industrial Demand | 22.8 | 22.4 | 23.0 | 23.2 |
| Electric Power Demand | 31.7 | 36.7 | 35.0 | 32.3 |
| Residential & Commercial | 28.4 | 20.2 | 18.0 | 19.6 |
| LNG Exports | 18.5 | 17.7 | 12.7 | 12.7 |
| Mexico Exports | 6.4 | 6.3 | 5.8 | 6.0 |
| Pipeline Fuel | 6.8 | 6.8 | 6.9 | 6.97 |
| Total Demand | 114.6 | 110.1 | 101.4 | 100.8 |
| Supply/Demand Balance | -0.8 | 2.1 | 6.4 | 5.73 |
Weather Analysis
Natural Gas Weather Impact:
HIGH heating demand - significant cold spell
(Heating-dominated conditions driving natural gas demand)
Weather Analysis Summary
Heating Degree Days (Utility Gas Weighted)
Last 7 Days:
122.0 HDD
-9.0 vs Normal
Next 7 Days:
122.0 HDD
-25.0 vs Normal
Cooling Degree Days (Population Weighted)
Last 7 Days:
2.0 CDD
+0.0 vs Normal
Next 7 Days:
6.0 CDD
+6.0 vs Normal
Weather Trend Analysis (Click charts to zoom)
HDD Analysis
CDD Analysis
×
![Zoomed Chart]()
Chart Analysis
Detailed Data
Recent HDD Data
| Date | HDD | Normal | Anomaly |
|---|---|---|---|
| 11/10 | 23.0 | 17.0 | +6.0 |
| 11/11 | 23.0 | 19.0 | +4.0 |
| 11/12 | 18.0 | 19.0 | -1.0 |
| 11/13 | 15.0 | 19.0 | -4.0 |
| 11/14 | 14.0 | 19.0 | -5.0 |
| 11/15 | 13.0 | 19.0 | -6.0 |
| 11/16 | 16.0 | 19.0 | -3.0 |
HDD Forecast
| Date | HDD | Normal | Anomaly |
|---|---|---|---|
| 11/18 | 20.0 | 20.0 | +0.0 |
| 11/19 | 18.0 | 20.0 | -2.0 |
| 11/20 | 17.0 | 20.0 | -3.0 |
| 11/21 | 15.0 | 21.0 | -6.0 |
| 11/22 | 17.0 | 22.0 | -5.0 |
| 11/23 | 18.0 | 22.0 | -4.0 |
| 11/24 | 17.0 | 22.0 | -5.0 |
Recent CDD Data
| Date | CDD | Normal | Anomaly |
|---|---|---|---|
| 11/10 | 0.0 | 1.0 | -1.0 |
| 11/11 | 0.0 | 1.0 | -1.0 |
| 11/12 | 0.0 | 0.0 | +0.0 |
| 11/13 | 0.0 | 0.0 | +0.0 |
| 11/14 | 0.0 | 0.0 | +0.0 |
| 11/15 | 1.0 | 0.0 | +1.0 |
| 11/16 | 1.0 | 0.0 | +1.0 |
CDD Forecast
| Date | CDD | Normal | Anomaly |
|---|---|---|---|
| 11/18 | 1.0 | 0.0 | +1.0 |
| 11/19 | 1.0 | 0.0 | +1.0 |
| 11/20 | 1.0 | 0.0 | +1.0 |
| 11/21 | 1.0 | 0.0 | +1.0 |
| 11/22 | 1.0 | 0.0 | +1.0 |
| 11/23 | 1.0 | 0.0 | +1.0 |
| 11/24 | 0.0 | 0.0 | +0.0 |
Data Source: NOAA Climate Prediction Center (CPC)
Region: CONUS
Climatology: 1981-2010 Normal Period
Economic Analysis
Economic Sentiment Summary
NEGATIVE - Economic indicators showing headwinds
Dollar Impact:
Strong USD may pressure commodity prices
Industrial Demand:
Weaker industrial demand signals
Interest Rate Impact:
Rising rates may impact energy demand
Risk Sentiment:
Moderate market volatility
Economic Indicators
USD_INDEX
99.61
Daily:
0.02 (0.02%)
Weekly:
0.13 (0.13%)
US_10Y
4.12
Daily:
-0.01 (-0.24%)
Weekly:
0.06 (1.43%)
SP500
6617.32
Daily:
-55.09 (-0.83%)
Weekly:
-233.6 (-3.41%)
VIX
24.69
Daily:
2.31 (10.32%)
Weekly:
7.18 (41.01%)
GOLD
4073.5
Daily:
5.2 (0.13%)
Weekly:
-130.9 (-3.11%)
COPPER
4.97
Daily:
-0.03 (-0.56%)
Weekly:
-0.12 (-2.31%)
CFTC Commitment of Traders Analysis
Natural Gas Positioning (NAT GAS NYME - NEW YORK MERCANTILE EXCHANGE)
Report Date: 2025-09-23
Sentiment: Bearish and Strengthening
Positioning: Normal Range
Open Interest
1,626,777
Change: -11,903
Managed Money
-63,176
Change: -40,085
-3.9% of OI
Producer/Merchant
-4,944
Change: +8,712
-0.3% of OI
Swap Dealers
124,686
Change: +6,611
7.7% of OI
Other Reportables
-64,908
Change: +22,945
-4.0% of OI
Analysis Rationale (Managed Money):
- Managed Money sentiment: bearish and strengthening
Crude Oil Positioning (WTI-PHYSICAL - NEW YORK MERCANTILE EXCHANGE)
Report Date: 2025-09-23
Sentiment: Bullish but Weakening
Positioning: Normal Range
Open Interest
1,936,690
Change: -25,930
Managed Money
26,483
Change: -10,316
1.4% of OI
Producer/Merchant
283,712
Change: -9,029
14.6% of OI
Swap Dealers
-402,312
Change: +5,178
-20.8% of OI
Analysis Rationale (Managed Money):
- Managed Money sentiment: bullish but weakening
LNG Market Analysis
LNG Market Summary
TTF prices increased to 10.645 EUR/MWh (+0.020). JKM prices remained stable to 11.127 USD/MMBtu (+0.000). JKM is trading at a premium of 0.482 to TTF, indicating strong Asian demand.
TTF Prices
10.645
+0.020Front month: DEC 25
As of 2025-11-18
JKM Prices
11.127
+0.000Front month: DEC 25
As of 2025-11-18
JKM-TTF Spread
0.482
4.53%JKM is trading at a premium to TTF, indicating strong Asian demand.
As of 2025-11-18
Forward Curves Visualization
TTF (EUR/MWh)
JKM (USD/MMBtu)
11.5
11.2
10.8
10.4
10.0
TTF Forward Curve (Next 12 Months)
| Month | Price (EUR/MWh) |
|---|---|
| DEC 25 | 10.645 |
| JAN 26 | 10.749 |
| FEB 26 | 10.761 |
| MAR 26 | 10.658 |
| APR 26 | 10.266 |
| MAY 26 | 10.157 |
| JUN 26 | 10.162 |
| JUL 26 | 10.188 |
| AUG 26 | 10.230 |
| SEP 26 | 10.304 |
| OCT 26 | 10.370 |
| NOV 26 | 10.581 |
JKM Forward Curve (Next 12 Months)
| Month | Price (USD/MMBtu) |
|---|---|
| DEC 25 | 11.127 |
| JAN 26 | 11.400 |
| FEB 26 | 11.070 |
| MAR 26 | 10.640 |
| APR 26 | 10.195 |
| MAY 26 | 10.185 |
| JUN 26 | 10.295 |
| JUL 26 | 10.425 |
| AUG 26 | 10.560 |
| SEP 26 | 10.545 |
| OCT 26 | 10.575 |
| NOV 26 | 10.835 |
News & Sentiment Analysis
Market Sentiment Overview
BEARISH
Average Polarity:
-0.3
Confidence:
1.0
Articles Analyzed:
42
Last Updated:
2025-11-18 23:47:56
Commodity Sentiment
CRUDE_OIL
-0.6
NATURAL_GAS
0.0
Top News Topics
Supply (3 articles)
- Oil prices fall as rising US inventories reinforce oversupply concerns Reuters
- Oil Steady As Geopolitics Balance Oversupply Concerns — Market Talk Dow Jones Newswires
- Oil Steady With Focus on Russian Supply — Market Talk Dow Jones Newswires
Demand (1 articles)
- Diesel Cracks Rise Amid Risks of Disruption to Russian Exports — Market Talk Dow Jones Newswires
Geopolitical (1 articles)
Weather (2 articles)
Fibonacci Levels Analysis
Current Price:
$4.39
Closest Support:
$4.25
3.19% below current price
Closest Resistance:
$4.69
6.83% above current price
Fibonacci Retracement Levels
0.0
$2.65
0.236
$3.13
0.382
$3.43
0.5
$3.67
0.618
$3.91
0.786
$4.25
Support
1.0
$4.69
Resistance
Fibonacci Extension Levels
1.272
$5.24
1.618
$5.95
2.0
$6.72
2.618
$7.98
ML Price Prediction
Current Price:
$4.37
Forecast Generated:
2025-11-18 23:47:56
Next Trading Day:
DOWN 0.12%
| Date | Prediction | Lower Bound | Upper Bound |
|---|---|---|---|
| 2025-11-19 | $4.37 | $4.04 | $4.69 |
| 2025-11-20 | $4.35 | $4.03 | $4.67 |
| 2025-11-21 | $4.36 | $4.03 | $4.68 |
| 2025-11-22 | $4.37 | $4.05 | $4.69 |
| 2025-11-23 | $4.37 | $4.04 | $4.69 |
ML Insights
- Forecast generated using ARIMA(5, 1, 0).
- The model predicts a price decrease of ~0.12% for the next trading day (2025-11-19), reaching $4.37.
- The 5-day forecast suggests relatively stable prices between 2025-11-19 and 2025-11-23.
- The average confidence interval width is ~14.8% of the predicted price, indicating model uncertainty.
- SIGNAL: Weak bearish signal, high uncertainty.
AI Analysis
For Energy Traders:
Current market indicators suggest a moderately bullish sentiment with a score of 3/5. Traders should note the Fibonacci support level at 4.25 and resistance at 4.69, indicating potential price fluctuations within this range. The ML price forecast indicates a slight decline of 0.12%, suggesting short-term opportunities for those looking to capitalize on volatility. However, the overall market sentiment is negative, which could pose risks for bullish positions.
For Producers (Oil & Gas Companies):
The fundamental balance shows a deficit of -0.80 BCFD, indicating tighter supply conditions. Producers should consider this while planning production levels, as the market sentiment remains negative, particularly influenced by geopolitical risks and oversupply concerns in crude oil. Hedging strategies should be evaluated carefully to mitigate potential price declines, especially given the bearish sentiment surrounding crude oil and natural gas markets.
For Consumers (Industrial/Utilities):
With heating demand expected to be moderate across most regions, consumers should prepare for potential cost fluctuations in natural gas prices. The overall market sentiment could lead to increased pricing volatility, especially as colder weather forecasts could drive demand higher. It is advisable to monitor supply reliability risks, particularly in light of the current fundamental balance indicating a supply deficit, which may impact procurement strategies.
For Commodity Professionals (Analysts, Consultants):
The market is currently influenced by a mix of negative sentiment and moderate technical indicators. The strongest driving factors include the supply deficit and heating demand trends. Analysts should closely watch for shifts in weather patterns and geopolitical developments that could alter market dynamics, as these factors are pivotal in determining future price movements and overall market stability.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice or specific buy/sell recommendations.