US natural gas futures rebound from 10-month low

US natural gas futures bounced back from a ten-month low on Monday, which they reached amid cooler weather forecasts and fading summer demand, easing concerns over tight storage levels ahead of winter.

Gas futures for September delivery on the New York Mercantile Exchange rose by 0.50% to $2.707 per million British thermal units, after bottoming out at their lowest since November 4, 2024 at $2.622.

The average amount of gas flowing to the eight big US LNG export plants has risen to 15.9 bcfd so far in August, up from 15.6 bcfd in July. That compares with a record monthly high of 16.0 bcfd in April.

“With summer waning, it is becoming clear that the expectation of strong power sector demand and growing exports limiting injections and giving us a below normal storage level to enter winter is simply not going to manifest,” said Gary Cunningham, director of market research at Tradition Energy.

“Weather over the next two weeks now looks to be firmly cooler than normal, limiting late-season cooling demand. There is also little impactful activity in the Atlantic basin tropics, with nothing likely to form in the next seven days,” he added.