Commodities▼ Bearish
Natural Gas: $2.65 Support Tested as Supply Caps Demand
Natural gas futures test $2.65 support as supply caps late-summer demand. Prices remain stuck in a tight range with the September contract nearing expiry and winter European demand a potential catalyst.
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Natural gas futures are testing the $2.65 support level as ample supply holds down late-summer demand, keeping the market stuck in a narrow range. Prices have drifted between that floor and the 50-day exponential moving average near $2.87 for the past two weeks, with no clear catalyst to push them either way.
The market is in what Chris, a senior analyst at FXEmpire, calls the "quiet season." Mild temperatures across the U.S. mean limited cooling demand, and storage inventories are healthy. "We are just simply stuck in relatively tight consolidation," he wrote. The September contract is nearing expiry, and the roll to October could bring a shift. "The October contract does tend to be a little bit more bullish than September because you start to talk about cooler temperatures," Chris said. The weather has not yet turned cooler, he added.