U.S. natural gas futures are retracting gains made after a lower-than-expected weekly storage injection. Despite strong weather-driven demand anticipated from the power sector in the upcoming week, analysts suggest higher prices are more probable in the medium term. Eli Rubin of EBW Analytics noted that while cooling demand might increase by the end of next week, the market's muted reaction to a recent EIA surprise indicates a lack of upward price momentum.

The incentive for marketers to fill regional storage is bolstered by the premium of January 2027 futures over October 2026 prices. This demand for storage injections could provide pricing support through the fall, especially if producers adjust production to capitalize on the contango structure for higher realized prices.

Nymex gas for September delivery traded down 1.1% at $2.729 per million British thermal units.