US Natural Gas Prices Stuck Despite Hot Weather

Natural gas prices remain under pressure despite hot weather and increased demand from LNG terminals.

The market is showing a contradictory balance of factors, with high production levels and expected inventories creating a substantial supply buffer.

Support for natural gas prices comes from increased consumption in the power sector, strong pipeline exports to Mexico, and the return of part of LNG feedgas demand following maintenance work.

The weather factor is currently limiting the downside rather than forming a bullish trend, with NOAA indicating an increased probability of above-normal temperatures across the continental U.S. in August.