Natural Gas Prices Stuck in Oversupply-Driven Trading Range

Natural gas prices have been stuck in a trading range between $2.60 and $3.00 due to an oversupply of the fuel, according to recent data.

The market has slipped to test its 50-day EMA, with the October contract currently trading at $2.895, just below the 200 EMA at $3.115 and a key level that caps upside.

A warmer-than-expected temperature forecast for the eastern United States and South is weighing on prices, potentially delaying a quick drawdown in natural gas inventories.

The Lower 48 dry gas build has reached a near-record 115 billion cubic feet, exacerbating the supply issue. The EIA's October outlook suggests storage at the end of the month will be at a 10-year high, 5% above the 5-year average.