Natural Gas Futures Analysis: Bearish Trends Continue Amid Trade Tariff Uncertainty
Since my last analysis on Apr. 2, 2025, natural gas futures have been on a steady decline, signaling a long-term bearish trend. The recent escalation in trade tariffs has added to the downward pressure, with speculation about a potential reversal growing as inventories rise.
Amidst global economic uncertainty and tightening supply options, the production cost of natural gas is expected to increase. With prices now trading at a pivotal juncture, meaningful support remains significantly lower.
Technical analysis reveals that natural gas futures have broken below key support levels and major moving averages, confirming a strong bearish formation. The ongoing bearish pressure could intensify following the release of weekly inventory data, with downside targets at $2.604 and $2.453 likely to be tested.
On the weekly chart, a long-term downtrend is expected to persist until cooling demand returns. While some support may emerge near the 100-day moving average, a decisive breakdown could trigger further downside. A potential reversal is not expected until 2026.
In conclusion, natural gas futures are likely to remain under bearish pressure for the remainder of this year. Investors should be cautious and monitor developments closely to protect their investments in the volatile energy market.