Cooler Weather Spurs Natural Gas Price Rally

US natural gas market fundamentals are loosening as cooler weather gains prominence. Despite this shift in demand, production shows signs of easing and a storage inventory surplus could further shrink. As a result, front-month futures rallied on Tuesday.

A combination of bullish signals and bargain buying bolstered the price increase. Specifically, supply is ticking down, which attracts buyers. Additionally, cooler weather pressures demand for natural gas, while feedgas calls are down due to maintenance activities.