Natural Gas Radar

2025-09-17 10:59

Table of Contents

Brian's Thoughts

Published: 09/17/2025 Focus: Natural Gas
Nat Gas got a boost with daily production dropping (or at least topping out. The fundamentals have been pointing to a move higher and this winter points to $4 and even $5 (assuming a good winter demand). 3.127 is the key to watch - if we get above that - we are likely to run. 2.92 is the last line of resistance but seeing how the range of 3.127 to 3.00 is the breakout range to watch.

Today's Update

Updated: 2025-09-17 10:58:06 Length: 480 chars
Natural gas prices are on the rise, recently hitting an 8-week high, primarily driven by an uptick in demand and a drop in daily production. With key resistance at $3.127 and support around $2.92, the market is poised for potential breakout movements. Analysts forecast prices could reach between $4 to $5 this winter, contingent on demand and weather conditions. As temperatures are expected to soar, traders should closely monitor these levels and market dynamics for actiona...

Executive Summary

Total supply increased by 0.4 BCFD | Total demand decreased by 0.1 BCFD | Market is oversupplied by 12.8 BCFD

Technical Analysis

Overall Technical Score (-5 to +5): -1 (Neutral)
Current Price: $3.13
Signal: Neutral

Moving Averages (9/20)

BULLISH

MA(9): $3.05

MA(20): $2.94

Current Price is 3.13, 9 day MA 3.05, 20 day MA 2.94

MACD (12, 26, 9)

BULLISH

MACD: 0.012

Signal: -0.0126

Days since crossover: 14

MACD crossed the line 14 days ago and is in a bullish setup

RSI (14)

NEUTRAL

Value: 58.02

Category: NEUTRAL

RSI is 58.02 (note 70% is overbought and 30% is oversold)

Volume (vs 20d Avg)

LOWER

Current: 62,803

Avg (20d): 140,651

Ratio: 0.45

Volume is lower versus 20 day average

Stochastic (14, 3)

BULLISH CROSS

%K: 87.93

%D: 71.61

Stochastic %K: 87.93, %D: 71.61. Signal: bullish cross

ADX (14)

NO TREND

ADX: 15.23

+DI: 24.43

-DI: 17.85

ADX: 15.23 (+DI: 24.43, -DI: 17.85). Trend: no trend

Williams %R (14)

OVERBOUGHT

Value: -12.07

Williams %R: -12.07 (overbought)

Bollinger Bands (20, 2)

ABOVE MIDDLE

Upper: 3.23

Middle: 2.94

Lower: 2.65

Price vs BBands (20, 2): above middle. Upper: 3.23, Middle: 2.94, Lower: 2.65

Fundamental Analysis

Category Current (BCFD) Last Week Last Year 3 Yr Avg
Dry Production 107.2 107.2 101.6 101.2
LNG Imports 0.0 0.0 0.1 0.1
Canadian Imports 5.1 4.8 6.4 5.93
Total Supply 112.3 111.9 108.1 107.23
Industrial Demand 22.5 22.3 21.8 21.67
Electric Power Demand 36.9 38.4 42.1 41.4
Residential & Commercial 10.2 8.8 8.3 8.47
LNG Exports 16.0 16.1 13.1 12.43
Mexico Exports 7.1 7.3 6.9 6.33
Pipeline Fuel 6.8 6.8 6.6 6.77
Total Demand 99.5 99.6 98.9 97.03
Supply/Demand Balance 12.8 12.3 9.2 10.2

Weather Analysis

Weather Impact Summary

Overall: COOLING dominated (HDD: 0.3, CDD: 8.5)
Residential/Commercial: LOW heating demand expected
Power Generation: MODERATE cooling demand expected

Regional Weather Patterns

Northeast

Cooling dominated (CDD: 5.5)

Midwest

Heating dominated (HDD: 1.5)

South

Cooling dominated (CDD: 12.5)

West

Cooling dominated (CDD: 19.0)

Degree Days by City

Chicago, IL

Heating Degree Days (HDD): 1.5
Cooling Degree Days (CDD): 0.0
Total HDD: 1.5
Total CDD: 72.0

New York, NY

Heating Degree Days (HDD): 0.0
Cooling Degree Days (CDD): 5.5
Total HDD: 0.5
Total CDD: 48.5

Houston, TX

Heating Degree Days (HDD): 0
Cooling Degree Days (CDD): 12.5
Total HDD: 0
Total CDD: 169.0

Los Angeles, CA

Heating Degree Days (HDD): 0
Cooling Degree Days (CDD): 19.0
Total HDD: 0
Total CDD: 174.0

Philadelphia, PA

Heating Degree Days (HDD): 0.0
Cooling Degree Days (CDD): 5.5
Total HDD: 1.0
Total CDD: 51.5

Economic Analysis

Economic Sentiment Summary

POSITIVE - Economic indicators generally supportive
Dollar Impact: Weaker USD may support commodity prices
Industrial Demand: Strong industrial demand signals
Interest Rate Impact: Stable/lower rates may support demand
Risk Sentiment: Low market volatility/risk appetite

Economic Indicators

USD_INDEX

96.72
Daily: -0.58 (-0.6%)
Weekly: -1.06 (-1.08%)

US_10Y

4.03
Daily: -0.03 (-0.81%)
Weekly: -0.05 (-1.13%)

SP500

6600.51
Daily: -14.77 (-0.22%)
Weekly: 68.47 (1.05%)

VIX

16.37
Daily: 0.68 (4.33%)
Weekly: 1.02 (6.64%)

GOLD

3720.4
Daily: 38.2 (1.04%)
Weekly: 76.8 (2.11%)

COPPER

4.62
Daily: -0.03 (-0.69%)
Weekly: 0.07 (1.62%)

CFTC Commitment of Traders Analysis

Natural Gas Positioning (NAT GAS NYME - NEW YORK MERCANTILE EXCHANGE)

Report Date: 2025-09-09
Sentiment: Bearish but Weakening
Positioning: Normal Range

Open Interest

1,631,092
Change: -4,577

Managed Money

-24,752
Change: +12,010
-1.5% of OI

Producer/Merchant

-30,640
Change: -8,946
-1.9% of OI

Swap Dealers

113,956
Change: +3,050
7.0% of OI

Other Reportables

-69,795
Change: -3,781
-4.3% of OI

Analysis Rationale (Managed Money):

  • Managed Money sentiment: bearish but weakening

Crude Oil Positioning (WTI-PHYSICAL - NEW YORK MERCANTILE EXCHANGE)

Report Date: 2025-09-09
Sentiment: Bullish but Weakening
Positioning: Normal Range

Open Interest

1,957,115
Change: -30,746

Managed Money

10,002
Change: -17,321
0.5% of OI

Producer/Merchant

301,400
Change: +1,664
15.4% of OI

Swap Dealers

-403,555
Change: +17,576
-20.6% of OI

Analysis Rationale (Managed Money):

  • Managed Money sentiment: bullish but weakening

LNG Market Analysis

LNG Market Summary

TTF prices increased to 11.161 EUR/MWh (+0.068). JKM prices remained stable to 11.360 USD/MMBtu (+0.000). JKM is trading at a premium of 0.199 to TTF, indicating strong Asian demand.

TTF Prices

11.161

+0.068

Front month: OCT 25

As of 2025-09-17

JKM Prices

11.360

+0.000

Front month: OCT 25

As of 2025-09-17

JKM-TTF Spread

0.199

1.78%

JKM is trading at a premium to TTF, indicating strong Asian demand.

As of 2025-09-17

Forward Curves Visualization
TTF (EUR/MWh)
JKM (USD/MMBtu)
12.1
11.8
11.5
11.2
10.9
11.16
11.36
OCT 25
11.50
11.45
NOV 25
11.70
11.71
DEC 25
11.79
11.93
JAN 26
11.81
11.96
FEB 26
11.64
11.66
MAR 26
11.16
11.16
APR 26
11.01
11.05
MAY 26
10.99
11.17
JUN 26
11.02
11.28
JUL 26
11.07
11.39
AUG 26
11.15
11.43
SEP 26
TTF Forward Curve (Next 12 Months)
Month Price (EUR/MWh)
OCT 25 11.161
NOV 25 11.500
DEC 25 11.696
JAN 26 11.793
FEB 26 11.813
MAR 26 11.636
APR 26 11.163
MAY 26 11.006
JUN 26 10.994
JUL 26 11.024
AUG 26 11.066
SEP 26 11.146
JKM Forward Curve (Next 12 Months)
Month Price (USD/MMBtu)
OCT 25 11.360
NOV 25 11.450
DEC 25 11.710
JAN 26 11.925
FEB 26 11.960
MAR 26 11.660
APR 26 11.165
MAY 26 11.050
JUN 26 11.170
JUL 26 11.280
AUG 26 11.395
SEP 26 11.425

News & Sentiment Analysis

Fibonacci Levels Analysis

Current Price: $3.13
Closest Support: $3.05 2.56% below current price
Closest Resistance: $3.19 1.92% above current price

Fibonacci Retracement Levels

0.0 $2.62
0.236 $2.89
0.382 $3.05 Support
0.5 $3.19 Resistance
0.618 $3.32
0.786 $3.51
1.0 $3.75

Fibonacci Extension Levels

1.272 $4.06
1.618 $4.45
2.0 $4.88
2.618 $5.58

ML Price Prediction

Current Price: $3.04
Forecast Generated: 2025-09-17 10:59:07
Next Trading Day: DOWN 0.68%
Date Prediction Lower Bound Upper Bound
2025-09-16 $3.02 $2.88 $3.16
2025-09-17 $3.03 $2.89 $3.17
2025-09-18 $3.05 $2.91 $3.19
2025-09-19 $3.05 $2.91 $3.19
2025-09-20 $3.04 $2.9 $3.18

ML Insights

  • Forecast generated using ARIMA(5, 1, 0).
  • The model predicts a price decrease of ~0.68% for the next trading day (2025-09-16), reaching $3.02.
  • The 5-day forecast suggests relatively stable prices between 2025-09-16 and 2025-09-20.
  • The average confidence interval width is ~9.2% of the predicted price, indicating model uncertainty.
  • SIGNAL: Bearish signal, moderate uncertainty.

AI Analysis

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For Energy Traders:

Current market conditions present a neutral technical outlook with a score of -1/5. The Fibonacci support level is at 3.05 while resistance is at 3.19. The ML price forecast indicates a potential decline of 0.68%, suggesting traders should be cautious of short-term price movements.

With cooling demand dominating across most regions, particularly in the South and West, traders should monitor cooling degree days (CDD) closely as they could influence natural gas prices. The overall market sentiment remains strong at +0.650, driven by recent output drops in natural gas. However, the slight increase in fundamental balance to 12.80 BCFD should also be considered for volatility assessments.

For Producers (Oil & Gas Companies):

Producers should note the bullish sentiment surrounding natural gas, with a sentiment score of +0.700. This is bolstered by reports of output drops leading to price increases. The fundamental balance indicates a slight increase, which may suggest a stable production environment, but producers should remain vigilant of market fluctuations.

Given the low heating demand expected, particularly in the Northeast, producers may need to adjust their strategies accordingly. Hedging strategies should account for potential volatility as cooling demand drives consumption, especially in warmer regions. The current market dynamics could provide opportunities for profit if managed carefully.

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For Consumers (Industrial/Utilities):

Consumers should prepare for potential cost fluctuations in natural gas due to the current market sentiment and the expected moderate cooling demand. The forecast indicates a cooling trend, especially in the South and West, which may lead to increased prices as demand rises.

With a fundamental balance of 12.80 BCFD, supply appears somewhat stable, but consumers should remain cautious about procurement strategies in light of the potential price drop indicated by the ML price forecast. Engaging in hedging may be prudent to mitigate risks associated with price volatility in the near term.

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For Commodity Professionals (Analysts, Consultants):

The current market landscape reflects a mix of bullish and neutral signals. The fundamental balance has increased slightly, suggesting a stable supply environment, while the technical indicators remain neutral. The cooling demand across regions is a significant driving factor for natural gas prices, particularly in warmer areas.

Analysts should closely monitor the ML price forecast predicting a decline, which could indicate a short-term shift in market dynamics. The overall market sentiment remains strong, but the divergence in regional demand patterns may create opportunities for strategic analysis and insights into pricing trends.

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice or specific buy/sell recommendations.