Natural Gas Gaps Higher on US LNG Export Demand to Europe

The move comes in a seasonally weak period for natural gas. The October contract, which becomes the front month next week, typically sees buying ahead of winter heating demand. But the market is still in the summer storage injection season, a headwind for sustained rallies.

Technically, the 50-day exponential moving average sits at $2.92 per million British thermal units. The $3 level has acted as both support and resistance in recent months. Traders said the key test is whether the rally can hold above that zone.

Traders are also watching the geopolitical backdrop. The US-Iran situation could affect broader energy supply routes, though no direct link to LNG flows has emerged. The gap higher on Monday was the first significant move in weeks for a market that has been range-bound. The October contract's seasonal bid and the Qatar-driven export demand give bulls a case, but traders noted that the storage surplus and mild weather forecasts remain counterweights.