Timing of LNG Demand Recovery in Focus as Natural Gas Futures Called Lower

With lingering uncertainty over how quickly liquefied natural gas (LNG) demand will recover following Hurricane Laura, gas futures were trading several cents lower early Tuesday. The October Nymex contract was down 7.0 cents to $2.560/MMBtu at around 8:45 a.m. ET.

The October contract fell to as low as $2.497 in Monday’s session amid signs of continued impacts to LNG demand from Laura.

Analysts at EBW Analytics Group said the market initially “badly misjudged” the storm’s impact.

“In an impressive show of strength…after support for October held just below $2.50, a better-informed assessment prevailed,” the EBW analysts said. “Futures rallied strongly, with October recovering all but 2.7 cents of its losses and the rest of the forward curve posting...