Ercot

Record-setting heat across Texas is keeping natural gas demand elevated, with traders watching whether ERCOT consumption can remain near peak levels. Supply remains the counterweight as active rigs stay near recent highs, storage remains ample, and new Permian pipeline capacity is set to reach Henry Hub.

September natural gas futures are drawing support from summer power demand and resilient LNG export expectations. However, inventories remain above the five-year average, leaving rallies exposed unless heat broadens and storage builds tighten further.

Natural gas futures remain capped as a near-consensus storage build and elevated inventories blunt the impact of hotter weather. Texas power demand is supportive, but buyers may need stronger heat across the Midwest and East, steadier LNG flows, and fewer storm risks before momentum can shift.