With shoulder season balances continuing to point to oversupply and summer cooling demand still weeks away, natural gas futures ventured into sub-$2 territory in early trading Friday.

NGI Morning Natural Gas Price & Markets Coverage

The May Nymex contract was down 3.6 cents to $1.971/MMBtu at around 8:40 a.m. ET.

There are “early signs” that natural gas prices could be forming a bottom, according to EBW Analytics Group.

“Recovering heating demand next week could provide a degree of support,” EBW analyst Eli Rubin said. “LNG feed gas continues to perform well, with the seven-day average climbing to 14.1 Bcf/d — 0.3 Bcf/d above last month’s daily highs. Natural gas production remains subdued due to gas pipeline maintenance. Injection demand from local distribution companies could ramp up in the coming...