Looking ahead at the natural gas market, it is clear that demand will remain strong over the next week despite hot weather conditions. However, the increase in production and ongoing issues at the Freeport LNG terminal, still closed due to Hurricane Beryl’s impact, are contributing to the downward pressure on prices.
In the recent EIA report, it is evident that high inventory levels are continuing to weigh on natural gas prices, leading to a challenging environment for bulls. With inventories climbing faster than anticipated, the market is struggling to find support even amidst the hot weather conditions.
The combination of elevated production levels and terminal disruptions at Freeport LNG is adding further negativity to the natural gas market. As a result, the market is in need of significant positive catalysts to shift the current bearish trend.
Currently, natural gas is testing the support level in the $2.25 – $2.30 range. If this level is breached, the next support level to watch is between $2.00 – $2.05. It is crucial to monitor the market closely to see if any potential catalysts emerge to reverse the current downward trajectory.
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