LNG Demand Boosts Natural Gas Futures as Winter Contracts Weaken

Natural gas futures staged a rebound on Friday as strong liquefied natural gas (LNG) demand helped the October contract recover from a test of technical support, despite expectations for loosening shoulder season balances weighing on much of the winter strip.

The October contract bounced back from an early low of $2.846 per million British thermal units (MMBtu), with LNG demand proving to be a key factor in the recovery.

However, the winter contracts were not immune to the effects of the loosening shoulder season balances, with storage surplus continuing to shrink as the fueling season gets underway.