Natural Gas Threatens $3: Inventory Build, Milder Weather Weigh

Natural gas futures slipped during the week, edging back toward the $3 level that has held since late June. The decline came after the U.S. Energy Information Administration reported a larger-than-expected storage build. At the same time, temperatures across much of the country turned milder, cutting air-conditioning demand.

Chris, a senior analyst with two decades of trading experience, said the combination of rising inventories and seasonal demand loss puts downward pressure on prices. He called the $3 mark the immediate support to track. A clean break below that level could lead to $2.75, then $2.50, he said.

The market is in a typically quiet stretch. Chris said that pattern is unlikely to change soon. He noted that any rally above $3 faces resistance near $3.35, where the 200-week moving average sits. Without a sustained heatwave across the U.S., he sees little chance of a breakout.

For traders, the playbook is straightforward. Rallies into the $3.30 area are selling opportunities, Chris said. He views the storage surplus and weak seasonal demand as supportive of further declines.