Natural gas futures rebounded early Wednesday as traders continued to mull the impact of an extended outage at the Freeport liquefied natural gas (LNG) export terminal in the context of storage deficits and a potentially hot summer ahead.

NGI Morning Natural Gas Price & Markets Coverage

After plummeting $1.420 in Tuesday’s session following news that the Freeport LNG facility won’t see a return to full service until late this year, the July Nymex contract had recovered a chunk of those losses as of around 8:50 a.m. ET. The front month was up 31.1 cents to $7.500/MMBtu. August was up 30.9 cents to $7.489.

With an extended outage for the Freeport terminal, the odds of summer natural gas prices surpassing the $10 mark have “materially lessened,” analysts at Tudor, Pickering, Holt & Co. (TPH) said.

Not including...