Gas Futures Test Support Amid Weakening Demand Outlook

Natural gas futures are testing support levels as the demand outlook for late September weakens. Prompt month natural gas futures edged downward in early Wednesday trade, weighed down by a decline in expected demand due to waning heat. However, strong immediate-term cooling and LNG export needs provided some support.

The year/year storage deficit offers a supporting factor for natural gas prices. This deficit indicates that storage levels are lower than they were at the same time last year, which can contribute to higher prices in the future.