SoftSignal Research  /  Markets  /  Energy

Natural gas is weather turned into demand — we measure the conversion daily.

Every morning, a new 16-day temperature forecast re-prices US heating and cooling demand. Every Thursday, the EIA reports whether storage kept up. Every Friday, the COT shows who was positioned for it. Energy Market Intelligence runs that loop daily — with demand weighted by where people actually live, not where the weather stations are.

Explore the Demo → Current gas signal →
Markets covered
NG NYMEX Henry Hub Natural Gas — 10,000 MMBtu
CL NYMEX WTI Crude Oil — 1,000 barrels
RB · HO RBOB Gasoline & NY Harbor ULSD — COT positioning
Demand model
9 US energy regions — population-weighted HDD/CDD
91 GFS grid points, 16-day forecast horizon, updated daily

Daily
Report cadence — weather each morning, EIA Thursday, COT Friday, same URL all week
16-day
GFS forecast horizon, scored against 30-year ERA5 normals (1991–2020)
9regions
Population-weighted demand regions built from 91 grid points
5-yr
EIA storage context — every weekly print vs. the 5-year average and prior year

The purest weather trade in futures markets

Natural gas demand is not an estimate — it is a physical response. When the temperature drops below 65°F, furnaces switch on; above it, air conditioners do. Degree days translate that response into a number, and the number moves billions of dollars of storage and futures positioning every week. The entire market runs on a forecast that resets every morning — which is why our energy report is the only one we update daily.

But a degree day computed in the wrong place is worse than none at all. A frigid morning in a sparsely populated county moves no meaningful demand; two degrees of cold in the corridor between Boston and Washington moves a lot. That is why we weight every forecast grid point by population before it becomes a demand number — and score it against normals built the same way, so a deviation is always apples to apples. When the 16-day outlook shifts, how many of those degree days landed where the people are?

Storage is the market's memory of every forecast that already verified. Each Thursday's EIA print settles last week's argument and starts the next one: is the surplus to the 5-year average growing because supply is strong, or because the weather never showed up? Crude runs on a different engine — global balances, OPEC, refining — but the positioning discipline is the same, and the COT book tells you who is leaning which way in both.


Four layers, one read

Every SoftSignal market is covered the same way: who holds the positions, what the balance sheet says, what conditions are doing, and what the climate background implies. For energy, each layer looks like this.

PositioningWho holds the risk
CFTC disaggregated COT for natural gas, WTI crude, RBOB gasoline, and NY Harbor ULSD — managed money and commercial net positions percentile-ranked, week-over-week flow, and open interest, updated each Friday.
Supply & demandThe balance sheet
EIA weekly storage vs. the 5-year average and prior year, Henry Hub spot, dry gas production, power burn, and LNG exports — the flows that decide whether a weather surprise matters.
Demand forecastThe daily reset
Population-weighted HDD/CDD from the 16-day GFS forecast across nine US energy regions, scored as deviations from 30-year ERA5 normals — plus forecast revision tracking, so you see not just the outlook but how it changed overnight.
Climate backgroundThe season-scale tilt
ENSO phase from NOAA indices (classified on the climate-adjusted RONI) and its documented seasonal demand implications — the difference between a La Niña winter and an El Niño one is measured in storage draws.

What demand season looks like

This is the raw material of the gas market: heating demand peaks in deep winter, cooling demand in high summer, and the shoulder months in between are where storage gets rebuilt — or doesn't.

US degree days by month — 30-year climate normal
Average daily degree days (°F base 65), composite of the 91 ERA5 grid points behind our nine-region series · 1991–2020
Heating degree days Cooling degree days
Average daily degree days (°F, base 65) by month — composite of 91 ERA5 grid points, 1991–2020 normals
MonthHeating degree daysCooling degree days
January27.80.1
February25.20.2
March18.50.5
April10.91.5
May4.54.1
June1.18.6
July0.212.1
August0.211.2
September1.66.6
October7.72.2
November16.90.5
December25.00.2

Unweighted average across all 91 grid points, shown here for seasonal shape. The report itself weights each point by population within its region — the methodology that separates demand that matters from weather that doesn't. How the weighting works →

Withdrawal season
Jan – Mar
Nov – Dec
Injection season
Apr – Oct
Shoulder pivots
Spring
Fall

The storage year: gas is injected April through October and withdrawn November through March. The shoulder pivots are where end-of-season storage math gets decided — and where forecast surprises carry the most leverage per degree.


The weekly rhythm

Monday
Fresh 16-day demand forecast every morning, all week
Forecast revision vs. prior run tracked daily
Tuesday
COT report date — positions as of today's close, published Friday
Wednesday
Henry Hub spot, production, power burn, LNG series refresh
Thursday
EIA storage released 10:30am ET — report updated same day
Friday
CFTC COT released 3:30pm ET — positioning added same day

The same report URL updates in place all week — the link from Monday's email shows Friday's data by Friday night. ENSO context refreshes monthly.


Where energy shows up

Daily report · Subscribers
Energy Market Intelligence

The core read, updated every morning: nine-region demand forecast with normals deviations, EIA storage context, Henry Hub fundamentals, and COT positioning for the gas and oil complex.

See it in the demo →
Cross-market · Subscribers
The Positioning Report — Energy & Metals

WTI crude and RBOB positioning in cross-market context, alongside gold, silver, and copper — for reading energy flows against the broader macro book.

See it in the demo →
Free · Weekly signal
Natural Gas Signal Page

The public one-page read: managed-money regime, week-over-week change, and demand-forecast stress — updated after every CFTC release, with an RSS feed.

Current gas signal →
Free · Weekly signal
WTI Crude Signal Page

The same one-page treatment for the crude book — positioning percentile and weekly flow at a glance.

Current WTI signal →

Energy research notes

Read today's energy data

The full report — this morning's demand forecast, storage context, and the latest positioning — is in the open demo. No email, no card.

Open the Demo → Plans & pricing →

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