After a recent pullback, futures were little changed as softer LNG feedgas flows and milder forecasts weighed on prices, while traders watched Freeport LNG’s return and hotter conditions in the South and West.
U.S. natural gas futures were little changed near $2.86/mmBtu in early trading after recent declines, as softer LNG feedgas flows linked to export-terminal maintenance and a milder weather outlook offset strong summer cooling demand. NatGasWeather.com said high pressure should keep much of the United States hot in the coming days, with temperatures from the upper 80s to the 100s, though power-sector gas use has underperformed this summer as renewables supply a larger share of electricity generation. Gary Cunningham of Tradition Energy said the market appears to be finding support as traders await a full return to service of the Freeport LNG terminal and more heat in the South and West next week, but added the Nymex August contract would need "significant help" from weather to move back toward $3.