Natural Gas Futures Surge Amid September Heat and Potential Demand Destruction

Natural gas futures rallied as traders anticipated increased demand due to a strengthening outlook for September heat. However, the potential impact of tropical cyclone Idalia threatens to temper this demand. Both the European and American models indicate hotter trends for next week, leading to an increase in cooling degree days. Additionally, estimates for this week's Energy Information Administration storage report have declined following a surprising 18 Bcf injection, which exceeded expectations.