Production, LNG Said Supportive as Natural Gas Futures Rebound in Early Trading

After heavy selling last week, natural gas futures bounced back somewhat in early trading Monday as analysts pointed to supportive export and production data. The September Nymex contract was up 5.0 cents to $3.911/MMBtu at around 8:50 a.m. ET.

With the weather outlook “largely unchanged” compared to previous expectations, analysts at EBW Analytics Group pointed to higher liquefied natural gas (LNG) feed gas demand and lower production as possible contributing factors to the rise in futures early Monday.

“Wind generation, however, which dropped sharply over the weekend and remains weak today, is expected to rebound tomorrow, constraining prices at Henry Hub,” the EBW analysts said.

Now that peak summer demand has most likely passed and the market is looking ahead to...