Updated Aug 30, 2024
8/30/24
A five-day losing streak has sent September natural gas futures below the $2/MMBtu level for the first time since early August, but bulls might get breathing room after the contract rolls off the board Wednesday.
August natural gas futures are riding higher before rolling off the board next week with speculator positioning and technical levels providing support.
August natural gas futures have grown more oversold by the day in July, tumbling past multiple technical levels to converge with spot cash prices and put $2/MMBtu psychological support into view.
Natural gas price bulls took a hit late last week as prompt-month natural gas futures sold off, taking technical indicators out of oversold territory ahead of the June contract rolling off the board Wednesday.
June natural gas futures have rallied more than 40% in May, with the move higher over the past week putting technical indicators even further into overbought territory.
Prompt-month natural gas futures on the New York Mercantile Exchange (Nymex) neared $2.00/MMBtu last week but failed to push beyond a $1.943 Wednesday intraday high.
July natural gas eased slightly Monday as traders cited weak technicals, and near term weather forecasts are unsupportive. At the close July had fallen eight-tenths of a penny to $4.317 and August was down eight-tenths of a penny to $4.352. July crude oil rose 25 cents to $93.26/bbl.
Trading on technical factors and influence from the liquid hydrocarbons, December natural gas futures explored lower on Tuesday. The prompt month notched a low on the day of $8.46 before settling at $8.567, down 15.3 cents on the session.
Trading on technical factors and influence from the liquid hydrocarbons, December natural gas futures explored lower on Tuesday. The prompt month notched a low on the day of $8.46 before settling at $8.567, down 15.3 cents on the session.
Pressured by weakness in the Sunday night Access trading session, the natural gas futures market turned lower Monday in sympathy with losses in the crude oil market and amid bearish short-term technical factors. However, chilly temperatures and stronger Northeast cash prices was enough to slow the downside momentum, leaving the April market with a modest 3.6-cent decline and $5.546 close.