Bullish ‘Narrative’ Seen Taking Hold in Natural Gas Markets as September Contract Rallies Further

With storage adequacy concerns continuing to stir, natural gas futures rallied further in early trading Wednesday. After soaring 60.1 cents higher in the previous session, the September Nymex contract was up 22.7 cents to $9.556/MMBtu at around 8:50 a.m. ET.

There were no major changes to the weather outlook overnight, with the European model continuing to advertise a “seasonal pattern” over much of the next two weeks, according to NatGasWeather.

“While U.S. weather patterns have trended cooler to be more seasonal for the coming two weeks…the natural gas markets are clearly looking further out” to the upcoming winter, NatGasWeather said. Bullish sentiment could be driven by “tight supplies and hopes for a colder than normal winter that will increase deficits...