Freeport LNG

September natural gas futures advanced as hotter Texas forecasts revived expectations for stronger cooling demand. Record Lower-48 output, Freeport LNG maintenance and a storage surplus keep Thursday’s EIA report at the center of the next market move.

Crude oil markets remain supported by restricted Strait of Hormuz traffic and deteriorating U.S. Iran relations, keeping supply risk in focus for WTI and Brent. Natural gas faces a different setup as strong U.S. dry gas production and comfortable storage levels continue to soften the domestic outlook.

September natural gas futures weakened Monday after a downside gap cut through near-term support and shifted that area into resistance. Cooler late-August forecasts, record Lower-48 output and reduced LNG export demand are leaving buyers with little immediate support.

Natural gas futures remain pinned between strong overseas LNG pricing and a domestic supply backdrop that still favors sellers. Export maintenance has limited the ability of U.S. terminals to answer global demand, while Lower-48 output remains elevated.

Natural gas futures remain under pressure as domestic fundamentals overpower overseas supply anxiety tied to the Strait of Hormuz. Freeport LNG maintenance, strong production and a 181 Bcf storage surplus are keeping sellers in control despite pockets of U.S. heat.