Natural gas (NG) is currently trading at around $3.00, clawing its way back after dipping to a key support level in early October. What's holding it up? There are three factors at play: a slow squeeze on supply, booming demand from US LNG terminals, and the heating season creeping closer to the northern part of the United States.
Let's start with the biggest one. Liquified natural gas exports are actually the star of the show. In September, American shipments rose to 10.9 million tons—up from 10.7 million in August—with over half of them heading to Europe. High gas prices on the global stage and ongoing chaos in the world energy market are keeping the appetite for US LNG alive and well. This means export terminals are running hot, and less product is left sitting in domestic storage—a clear win for the commodity.
The heating season is another piece of the puzzle. Chillier-than-usual temperatures in late October could send household and energy sector gas demand sharply higher. Of course, the weather is always a wildcard, though a sustained cold snap may easily add fuel to the rally.
Last but not least, the technical picture. From a chart perspective, natural gas is shaping up for a bullish move. In early October, the market retested key support near $2.80—a level that had previously contained it several times. Once again, bulls stepped in and held the line, letting quotes climb back to $3.00. So, what is their next big target? This would be $3.37, which matches the highs from late June.
The ultimate recommendation is to buy natural gas at the current price ($3.00), aiming to reach $3.37 within one month. To shield your position from adverse market movements, place a Stop Loss order at $2.80.
This content is for informational purposes only and is not intended to be investing advice.
