Natural Gas Futures Soar as Hot Weather Forecast Takes Hold

Natural Gas Futures rallied nearly 2% in morning trading to reach $2.786 per MMBtu, recovering from Thursday's steep decline.

The bounce was driven by updated weather models showing hotter-than-normal temperatures persisting across the U.S. South through early September, particularly in Houston where highs were expected to reach around 100°F from August 20-23.

A leaner-than-expected storage build also contributed to the rally, with the EIA reporting a 16 billion cubic feet injection, below the five-year seasonal average of 29 bcf and last year's 19 bcf injection during the same week.