Natural Gas steams higher in Asia

A pledge by Russia to increase natural gas supply to Europe, along with aggressive intervention last week by the NDRC in the coal and the LME in copper, eased concerns over surging commodity prices, inflation and an energy crisis.

Energy 1

However, a shift in weather models over the weekend that predicts colder weather in the U.S. helped propel the price of natural gas 13% higher overnight to close at $5.98 (+13.22%).

The forecast of cooler weather is typical at this time of the year and comes after a run of warmer weather that allowed producers to store more gas than usual.

Nonetheless traders remain acutely aware that inventories remain low and that the U.S. is expected to export excess gas to help ease shortages in Europe and Asia.

No doubt also contributing to the overnight rise, nerves ahead of the expiration of the November Natural gas futures expiration later this week.

Last but not least, U.S. President Biden's energy security advisor claims that Russia is using natural gas as a political tool to fast track approval of its controversial Nord Stream 2 pipeline.

The price of natural gas is trading another 3% high in the Asian time zone today at $6.08, further supporting the idea that the pullback from the $6.466 high to the $4.825 low was a correction within a bull market.

Providing natural gas does not break below support $4.80/$4.70 a bullish bias is in place looking for a retest of the October $6.466 high. Mindful that if resistance at $6.50 breaks, there is very little in the way of resistance until $10.00.

Natural Gas Daily chart 26th of October


Source Tradingview. The figures stated areas of October 26th, 2021. Past performance is not a reliable indicator of future performance.  This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation

How to trade with City Index

You can trade easily trade with City Index by using these four easy steps:

  1. Open an account, or log in if you’re already a customer 

    Open an account in the UK
    Open an account in Australia
    Open an account in Singapore

  2. Search for the company you want to trade in our award-winning platform 
  3. Choose your position and size, and your stop and limit levels 
  4. Place the trade


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.