Cove Point

Natural gas futures rallied after a lighter than normal EIA storage injection narrowed the market surplus and forced short sellers to cover. Traders are now watching whether fresh buying can sustain the move or whether momentum fades after the squeeze.

Natural gas futures are hovering near the 50-day moving average as counter-trend buyers try to slow a bearish setup. LNG feedgas demand has weakened during Cove Point maintenance, leaving traders focused on storage data and late-month weather.

Natural gas futures are attempting to stabilize near the 50-day moving average, but the broader setup remains pressured by weaker LNG feedgas demand and resilient production. Traders are watching Thursday’s storage report and the early October weather outlook for the next directional signal.