With the prompt month contract on the doorstep of expiration and fundamentals providing little support, natural gas futures fell early Tuesday.
Coming off a 6.6-cent decline the prior session – and lost ground overall last week – September Nymex futures shed 3.6 cents to $1.920/MMBtu as of 8:30 a.m. ET. The front month contract rolls off the books Wednesday, and traders tend to sell into expiry.
“Final settlement sessions have posted losses for the expiring front month in seven straight months,” said EBW Analytics Group’s Eli Rubin, senior analyst. “While near-term heat may help stabilize gas prices and end-of-month dynamics are difficult to predict with confidence, the balance of immediate-term risks points lower for September.”
