Natural Gas Slips as Supply Overloads Weak Demand

The $2.50 level has acted as support in previous sessions. A break below that could open a test of the $2.40 area, traders said. On the upside, $3.00 stands as resistance, though the bearish fundamentals make a rally to that level unlikely without a supply shock.

Liquidity may thin over the next few days as the front-month contract rolls off, adding to price swings. The broader picture remains bearish, with traders watching for any shift in storage data or weather forecasts that could tighten the balance.

No major supply disruptions have emerged, and production remains steady. Until demand picks up, the market is likely to stay under pressure, several traders said.