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- Natural Gas Update October 20,2025
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Overview
Natural Gas -- November NG is up 20.4 cents at $3.212
NG futures have gapped up over the weekend as colder weather forecasts have added demand.
Celsius Energy notes a 25 to 40 GWDD increase in the forecast seen over the weekend for the 4 week period from October 11 to November 7. They say that this amounts to a 12% increase in the GWDD forecast. The GWDD total, though, remains below the historical average for the period, Celsius adds.
The Baker Hughes gas rig count saw an increase of 1 unit in Friday's report.
In the LN/NG options on the CME, the December $4.50 call open interest rose by 17,074 contracts. One very large trade saw the call purchased at a cost of 7.1 and 7.2 cents against .19 delta sales of the December futures at $3.70.
Friday's rally in NG futures may have been somewhat a function of short covering. The pattern seen of late of the December through March strip being weaker than the spot November contract was reversed in Friday's settlements on the CME--with November up 7.0 cents, while the December through March strip rose by 9.1 to 10.7 cents.
Technically, the NG spot futures have momentum that looks poised to turn upward. Upside resistance is seen at 3.267-3.270 for the spot futures. Above that resistance lies at 3.331-3.334. The prior resistance area at 3.130-3.133 should provide support. Below that support is seen at 3.050-3.056. The gap created over the weekend goes from 3.136 down to 3.024.
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Disclaimer
This article and its contents are provided for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any commodity, futures contract, option contract, or other transaction. Although any statements of fact have been obtained from and are based on sources that the Firm believes to be reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed.
Commodity trading involves risks, and you should fully understand those risks prior to trading. Liquidity Energy LLC and its affiliates assume no liability for the use of any information contained herein. Neither the information nor any opinion expressed shall be construed as an offer to buy or sell any futures or options on futures contracts. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Any opinions expressed herein are subject to change without notice, are that of the individual, and not necessarily the opinion of Liquidity Energy LLC
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