Baker Hughes

Natural gas futures finished higher as LNG feedgas climbed and heat supported near-term demand. However, elevated inventories, resilient production and incoming Permian supply continue to limit bullish conviction.

September natural gas futures are under pressure ahead of the EIA weekly storage update, with traders watching whether a potential reversal pattern can attract follow through buying. Extreme southern heat is supporting power burn, but cooler conditions across key consuming regions and strong Lower 48 production continue to favor sellers.

Natural gas futures found support from short covering as Texas and the Plains kept cooling demand alive. The broader setup remains pressured by strong production, cooler conditions across key regions and storage levels that continue to reassure sellers.

Natural gas futures remain under pressure as stronger wind generation, elevated production and storage rebuilding weaken the bullish case. Winter demand expectations are also being challenged by increasingly confident El Niño forecasts that point to milder conditions across key northern demand regions.

Natural gas futures remained on the defensive as a large storage build outweighed strong summer cooling demand and firm LNG feedgas flows. Market participants continue to see production near record levels as the central reason weather-driven demand has not tightened the balance enough.