Natural gas prices experienced a decline of 3.7%, settling at Rs 294.4. This drop was influenced by expectations that U.S. gas inventories will remain well above seasonal norms, even in the face of robust summer cooling demand. Market sentiment was influenced by a modest rise in daily production and ongoing confidence in sufficient supply availability. Despite weather forecasts predicting above-average temperatures throughout a significant portion of the United States until June 26, which would typically bolster air-conditioning demand and increase gas consumption by power utilities, the market continued to concentrate on the ample storage levels and the ongoing growth in long-term supply.

According to LSEG, the average natural gas production in the U.S. The Lower 48 states recorded an average of 109.0 billion cubic feet per day in June, which is slightly lower than May’s average, yet remains at historically high levels. Demand prospects remain favourable, with total petrol consumption, including exports, anticipated to increase from 102.9 bcfd this week to 104.3 bcfd next week. However, flows to major U.S. LNG export facilities have eased to 16.5 bcfd in June from 17.1 bcfd in May due to seasonal maintenance activities at several export plants, including Golden Pass and Freeport LNG facilities.

Storage data presented a blend of indicators for the market. U.S. utilities added 95 billion cubic feet of natural gas to storage in the most recent week, falling short of the anticipated 101 Bcf increase. Total inventories reached 2.578 trillion cubic feet, remaining 138 Bcf above the five-year average despite being marginally below year-ago levels. Looking ahead, the U.S. Energy Information Administration anticipates that both natural gas production and consumption will achieve record highs in 2026, driven by rising LNG exports and heightened demand from the power sector.

From a technical standpoint, the market is experiencing new selling pressure, as open interest has surged significantly by 27.42% to 21,030 contracts, while prices have decreased by Rs 11.3. Natural gas is currently positioned with immediate support at Rs 289.7, while additional downside support is identified at Rs 284.9. Resistance is identified at Rs 303.1, and a breakthrough above this level may pave the way for potential gains toward Rs 311.7.