Natural Gas Falls as April Gap Fill Looms for Traders

Natural gas futures slipped in early trading Tuesday, pressured by a persistent supply glut and weak seasonal demand, traders said. The front-month September contract moved lower, with traders describing the price action as typical of the shoulder season when weather-driven demand is minimal.

The gap on the chart from late April remains a subject of discussion. Some traders said the contract could test that level in the absence of a fresh catalyst. The lack of extreme weather and stable supply have kept the market range-bound, they added.

One factor under the radar is Qatar's recent pattern of importing U.S. LNG to meet its European delivery commitments, a practice that has been ongoing in recent months, traders noted. Should disruptions in the Strait of Hormuz resume, that could add to winter supply tightness, some market participants said.