Natural Gas Prices Stabilize Amid Strong Demand and LNG Exports
Natural gas prices have stabilized after a significant decline, supported by expectations of stronger cooling demand in major US consuming regions. Forecasts indicate above-normal temperatures in Texas and other key areas will increase electricity generation demand, offsetting the bearish impact of seasonal inventory injections.
The latest EIA report showed US underground storage increased by 32 Bcf, matching market expectations and reinforcing that supply remains comfortable but not excessive.
Market focus has shifted toward demand, LNG exports, and Federal Reserve expectations. Recent macroeconomic data have strengthened the possibility of a less restrictive policy stance later this year if inflation continues to moderate.
The technical outlook suggests Natural Gas is attempting to stabilize after its steep decline, with prices recovering from recent lows but still trading below the 200-period moving average. Immediate support is located around $2.88-2.90, while initial resistance is seen near $2.95-3.00.