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Natural Gas Weighed Down by Storage and Mild Weather

Key Takeaways -Natural gas remains under pressure despite strong LNG demand and production cuts. -Mild weather and ample storage are capping upside potential for prices. -US production cuts have slowed, but storage levels still weigh on the market. -$2.58 is a critical support level, while $2.80 marks immediate resistance. Natural gas prices have been stuck near recent lows, trading around $2.69. The combination of mild weather and ample storage has kept a lid on price movements, with production cuts not being enough to balance the oversupplied market. Latest data shows that natural gas storage stands at 1,970 Bcf, significantly above the five-year average, reducing the urgency to push prices higher. Warmer weather has also limited heating demand, preventing any tightening of supply that typically drives prices up. LNG Exports Provide Support But Have Limited Impact LNG feedgas flows have remained strong, averaging 18.9 bcfd in April, near record levels. While this provides some support, the effect on prices has been muted. With export terminals operating at full capacity, the bullish influence of LNG exports is becoming less pronounced. Consequently, natural gas prices are struggling to rise despite healthy export demand. Storage and Weather Remain Key Factors The major factor keeping natural gas prices subdued is the ample storage levels. As the injection season continues and weather conditions stay mild, traders are not pricing in any scarcity. This lack of urgency results in a market that remains largely flat with limited upside potential. Natural Gas Prices Consolidate Near Key Support Level From a technical perspective, NG-C is consolidating near $2.69, with resistance around $2.80 and support at $2.58. The market has shown weak momentum after the recent pullback, and the outlook remains uncertain until a significant catalyst emerges. The focus remains on whether the support at $2.58 holds or if further downside movement takes place. Explore the full analysis on how weather, storage dynamics, and LNG demand are influencing natural gas prices.

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Publication date:

2026-04-22 08:04:04 (GMT)

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