U.S. natural gas futures are holding steady in early trading, following four consecutive sessions of losses. The August contract is nearing expiration, with its performance influenced by competing market forces.

While strong production, reduced liquefied natural gas (LNG) demand, and above-average storage levels have pressured prices, the persistent heat driving power-sector demand offers some support. Analysts suggest that prices may continue to face downward pressure through August.

However, a potential rebound is anticipated for the autumn. This outlook is based on the expectation that lower natural gas prices will incentivize a shift from coal to gas for fuel, coupled with anticipated production curtailments and delayed well completions by producers, according to Eli Rubin of EBW Analytics. The August Nymex contract hovers near flat at $2.663/mm Btu, while the September contract shows a modest gain of 0.3% to $2.709/mm Btu.