Natural Gas Prices React to Weather, Storage Data, and Market Conditions
U.S. natural gas futures experienced fluctuations last week due to changing weather conditions and shifts in the global LNG market. Initially, cooler temperatures drove up demand, but milder weather forecasts dampened the rally. High European gas inventories reduced the need for additional LNG supplies. Revised weather forecasts predicting colder temperatures led to increased demand expectations, but concerns about potential demand drops and escalating production balanced the market's response. The upcoming EIA storage report will be a key determinant for next week's natural gas futures, with a storage draw potentially signaling rising demand due to colder temperatures. However, another build in storage could continue to exert downward pressure on prices. The market remains highly responsive to weather forecasts, creating an unpredictable environment for U.S. natural gas futures.