US Storage Pressures Natural Gas Prices Amid Seasonal Weakness

Natural gas prices are seeing increased selling pressure on Thursday due to a lack of demand and an abundance of supply. According to technical analyst Christopher Lewis, this is not a surprise given the seasonal outlook for natural gas.

The market has been range-bound, with significant support at $2.65. However, traders are looking ahead to the switchover into the October contract, which could lead buyers to re-enter the market. The overall trend in natural gas is cyclical and seasonal, driven by geopolitics such as concerns over imports from Qatar to the European Union.

If this issue persists, it's likely that gas will come from the United States, making the winter market stronger. For now, traders are focused on the massive amount of storage in the US, which is putting downward pressure on prices.