Natural Gas News: Market outlook weakens due to inventory report and upcoming mild weather

Extended forecast reinforces minimal demand

Weather models for the next 15 days continue to indicate low demand, with colder weather systems having minimal impact on the US. Demand for natural gas remains relatively low, which is a bearish factor for prices. Industry analysts stress that without a shift to colder temperatures, any upward move in prices is likely to be short-lived unless supported by bullish developments outside of weather influences. This trend suggests that it may be difficult for traders to achieve a sustained price rally without sharper temperature drops.

Key levels and market sentiment

The $2,764 support level remains a critical threshold for natural gas prices. If prices fall below this level, bearish sentiment could cause futures to decline towards $2.585, posing a short-term downside risk. Conversely, if the market finds stable support, bullish momentum could push prices towards the 50-day moving average at $3,078, providing a potential upside target for traders looking to get in on a recovery.

Market outlook

Given current forecasts and support tests, the natural gas market is trending towards a pessimistic outlook in the short term. The expected low demand for natural gas coupled with mild weather in key regions limits the prospects for a sustainable recovery. Traders should be alert to weather-related spikes in demand or unforeseen market events that could change this trend. However, if these are missing, prices will likely remain under pressure.