26-02-2026

Executive Summary:

U.S. natural gas futures remained under pressure near multi-month lows ahead of the weekly storage report from the U.S. Energy Information Administration. However, the actual storage data came in more supportive than market expectations, helping prices stabilize. The lighter withdrawal was offset by signs that inventories are normalizing at a measured pace, while steady LNG exports continue to absorb supply. Although mild weather and steady domestic production keep the broader outlook cautious, the latest storage figures provided short-term support to natural gas prices.

26-02-2026

Natural Gas Storage & Market Impact:

The latest storage data indicates that withdrawals are slowing compared to previous weeks, signaling easing supply tightness as winter demand fades. Strong domestic production and milder weather forecasts are further reducing heating demand expectations, allowing inventories to gradually normalize. Although LNG exports remain supportive, the overall supply-demand balance currently favors a softer market tone.

Market Impact:
 Slower withdrawals → Reduced supply concerns
 Mild weather outlook → Lower heating demand
 Strong production → Added downside pressure
 Robust LNG exports → Partial fundamental support

26-02-2026

Natural Gas Storage Trend:

26-02-2026

Events to watchout:

1.Kremlin on Oil & Gas Revenues: The Kremlin said that the recent drop in oil and gas revenues is being partly balanced by higher earnings from non-energy sectors of the economy. Russia is earning less money from selling oil and gas, but other sectors (like manufacturing, taxes, domestic industries, etc.) are generating more income, helping stabilize overall government revenue.

If oil & gas revenues stay weak, Russia may rely more on diversified sectors. Lower energy income can reduce government spending power in the long term. For global markets, weaker Russian energy revenues may reflect softer oil/gas prices. However, economic diversification reduces pressure on Russia’s fiscal stability. Slightly bearish sentiment if energy revenue weakness signals softer global demand.

26-02-2026

2. Saudi Aramco Gas Expansion:

Saudi Aramco announced major progress in its gas expansion strategy. The Tanajib gas plant, one of the world’s largest gas processing facilities, has started operations. The expansion is expected to create thousands of direct and indirect jobs. Saudi Arabia is increasing its gas production capacity and investing heavily in the gas sector. The new plant boosts processing capability and supports long-term growth targets.

 Higher gas production → More global supply.
 Could reduce long-term supply tightness in LNG markets.
 Strengthens Saudi Arabia’s position in global gas trade.
 Positive for economic growth and employment in the region.
 In the long term, more supply may limit sharp price spikes in global gas markets. Medium-term bearish for gas prices due to increased supply, but positive for global energy security.

Medium-term bearish for gas prices due to increased supply, but positive for global energy security.

26-02-2026

LNG Market Update:

US LNG Export Levels – Firm & Expanding

The United States continues to strengthen its position as a key LNG supplier, with new long-term agreements supporting steady export growth. Strong global demand has boosted performance for major exporters like Cheniere Energy, reflecting sustained international appetite for U.S. cargoes. Strong LNG exports help absorb domestic supply, offering underlying support to U.S. natural gas prices.

Europe Gas Demand – Structurally Strong Europe remains heavily reliant on LNG imports as it reduces dependence on Russian pipeline gas. High import levels continue as part of long-term energy security planning. Firm European demand supports U.S. export flows and limits downside pressure in natural gas markets.

Asia Spot LNG Trend – Softer Tone Asian spot LNG demand has eased, particularly due to milder weather and slower buying interest from key importers. This has softened spot prices and redirected some cargo flows toward Europe. Weaker Asian demand reduces global price pressure, creating a mildly bearish undertone for natural gas.

Supply Risks – Stable but Watchful While no major outages are currently disrupting flows, logistical and geopolitical risks remain present in global LNG trade routes. Supply remains stable for now, but unexpected disruptions could quickly tighten balances.

26-02-2026

Technical Analysis:

Natural Gas futures are currently trading within a falling wedge pattern, a structure that typically signals a potential bullish reversal when confirmed with a breakout. Prices are compressing near the lower trendline support, indicating selling pressure may be losing momentum.

A decisive close above 270 would confirm the breakout from the wedge formation. Such a move could trigger fresh buying interest and short covering, opening the door for an upside move toward 290, which stands as the next key resistance zone.

Recommendation: Buy: 270 Target: 290 Stop Loss: 250

26-02-2026

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