Natural Gas Prices Weighed Down by Oversupply and Unseasonable Weather

Natural gas prices have been affected by the typical oversupply that occurs this time of year. The strong oversupply is even more pronounced than usual, keeping prices in a somewhat depressed state.

This situation will likely persist until the market rolls over to the October contract in a couple of weeks. At that point, traders may start thinking about fall and how it could potentially bring some relief to the natural gas market.

Historically, it is not until there are forecasts of cold weather and sudden drops in temperature in the United States that natural gas prices tend to rise. For now, the commodity remains abundant, with the US nowhere near running out of it.