Natural gas prices increased by 0.57% to reach a settlement at Rs 300, bolstered by a storage build from the EIA that was tighter than anticipated, alongside robust demand for LNG exports. The most recent report indicated a storage increase of 53 billion cubic feet (bcf) for the week ending September 26, which falls short of the anticipated 67 bcf and the five-year average of 85 bcf, suggesting a tighter supply environment. Total inventories reached 3.561 trillion cubic feet (tcf), reflecting an increase of approximately 0.6% compared to the previous year and standing 5% above the seasonal average.

The reduced scale indicated a decline in 48-state production from its record highs, alongside LNG exports achieving unprecedented levels. Weather forecasts provided additional support, as anticipated cooler mid-October temperatures are likely to increase heating demand, despite the fact that early October warmth has momentarily limited consumption.

The EIA’s Short-Term Energy Outlook anticipates that U.S. natural gas output and demand will reach unprecedented levels in 2025, with production expected to be 106.6 bcfd and consumption at 91.5 bcfd, followed by a slight decline in 2026. The agency anticipates a significant increase in LNG exports, projecting a rise to 14.7 bcfd in 2025 and 16.3 bcfd in 2026, in contrast to a record 11.9 bcfd in 2024, highlighting robust international demand.

From a technical perspective, the market is experiencing new buying activity, as evidenced by a 3.64% increase in open interest to 22,552 lots, alongside a price gain of Rs 1.7. Natural gas exhibits support at Rs 295, with potential testing at Rs 289.9 should it fall below this level. Resistance is identified at Rs 307.5, and a breach above this threshold could propel prices toward Rs 314.9. Natural gas concluded the trading session with an uptick, influenced by signals related to supply and demand dynamics.