Cooler Forecasts Spark Natural Gas Price Decline

Natural gas futures took a sharp turn downward on Tuesday as forecasts of cooler temperatures across key eastern demand centers outweighed improving LNG feedgas demand and a modest decline in daily production.

The September natural gas futures contract settled lower, erasing the gains made on Monday. This reversal was driven by expectations for another storage build above seasonal norms, which would further trim demand for natural gas.

According to data from Entropic Analytics, LNG feedgas demand has been improving, but it was not enough to offset the bearish outlook for storage. The recent decline in daily production also failed to have a significant impact on prices.