Natural gas futures clawed back most of their early losses Tuesday as the season’s first Gulf Coast tropical storm moved into the Texas-Louisiana LNG corridor without denting feedgas nominations, underscoring how closely the market is watching the interaction between storm risk, LNG flows and late-summer demand.

At a Glance:

• Sabine Pass lifts noms as Edouard nears
• October rebounds from $2.851 low
• Power burn holds above 51 Bcf/d

Physical natural gas prices fell back across the Gulf Coast and Southeast Tuesday for Wednesday delivery, surrendering about two-thirds of Monday’s surge past $7 as Tropical Storm Edouard came ashore near the Texas-Louisiana border. The retreat followed a sharp weather-driven jump in regional cash markets, but LNG infrastructure in the corridor remained a focal point for traders as they gauged whether the storm would alter near-term gas demand.

Gulf Coast Cash Prices Recede After Monday Spike

Physical natural gas prices fell back across the Gulf Coast and Southeast Tuesday for Wednesday delivery, giving back about two-thirds of Monday’s rally that pushed prices above $7 as Tropical Storm Edouard made landfall near the Texas-Louisiana border.

US manufacturing continued to expand in August, with factory production remaining strong and Texas activity accelerating, providing a supportive backdrop for industrial natural gas demand heading into fall. For gas markets, the reading matters because industrial consumption can help steady demand as seasonal cooling eases and the focus shifts toward autumn usage patterns.

Manufacturing Growth Supports Industrial Demand

US manufacturing continued to expand in August, with factory production remaining strong and Texas activity accelerating. That trend provided a supportive backdrop for industrial natural gas demand heading into fall.

Despite an enormous increase in US LNG output this year, benchmark Henry Hub prices have barely budged, highlighting how export growth has been offset by ample supply and a market that has not yet needed a decisive price move to balance flows.

LNG Output Surges, Henry Hub Stays Below $3

Despite an enormous increase in US LNG output this year, benchmark Henry Hub prices have barely moved.

A technical ceiling close to the $3.00/MMBtu level kept front-month natural gas futures in check Tuesday as the calendar flipped to September and meteorological autumn began. The level has become a near-term reference point for traders even as weather and LNG headlines continue to drive intraday volatility.

Technical Resistance Holds Near $3.00/MMBtu

A technical ceiling close to the $3.00/MMBtu level kept front-month natural gas futures in check Tuesday as the calendar turned to September and meteorological autumn got underway.

Prompt-month natural gas futures struggled to sustain momentum Tuesday morning as weather forecasts and LNG demand leaned bullish, while strong supply remained a counterweight. That combination has kept the market sensitive to changes in storage, production and export expectations, with weather often providing the fastest catalyst for price swings.

Early Futures Trading Turns Mixed

Prompt-month natural gas futures struggled to sustain momentum Tuesday morning as weather forecasts and LNG demand leaned bullish, while strong supply remained a worthy counterweight.

Physical natural gas prices surged across the Gulf Coast and Southeast Monday as air conditioning demand under an entrenched heat dome combined with recovering LNG exports to lift hubs from Louisiana to Florida. The move showed how quickly regional cash markets can reprice when power-sector demand and export nominations tighten available supply at key Gulf Coast delivery points.

Southeast Cash Prices Jumped on Heat and LNG Demand

Physical natural gas prices surged across the Gulf Coast and Southeast Monday as air conditioning demand under an entrenched heat dome combined with recovering LNG exports to lift hubs from Louisiana to Florida.

Chris Newman joined NGI in October 2023. He worked 18 years at Argus Media, starting in 2004 in Washington, D.C., where he covered US thermal and coking coal markets and rail transportation. In 2014, he moved to Singapore to help lead Argus’ coverage of steel and its raw material feedstocks. A graduate of the University of Virginia, Newman returned to his native Virginia in 2021.