Updated Aug 30, 2024
8/30/24
Against a backdrop of strong production, stout supplies in storage and a demand-thwarting hurricane, natural gas forward prices struggled for direction and ultimately gave up ground.
August natural gas futures were trading lower through midday Thursday after the latest weekly storage injection landed above historical levels.
Natural gas forward prices maintained a bullish hue in parts of the West as intensifying heat propelled demand expectations, but robust national supply and mixed weather outlooks fostered bearish sentiment elsewhere. Prices broadly retreated.
Hot weather in Asia continues to attract LNG cargoes from the Gulf Coast, which has created a lopsided shipping market.
Natural gas forwards advanced across portions of the East from June 13-18, bolstered by sweltering forecasts and a new pipeline expanding the reach of Appalachian Basin gas, according to NGI’s Forward Look.
Natural gas futures forged ahead for the first time in five sessions on Tuesday as traders shifted their focus from stout supplies to a surge in heat that canvassed large swaths of the Lower 48 and galvanized air conditioning use.
Hotter than normal weather this summer may pressure U.S. grid performance, as total load climbs year/year and natural gas consumption increases 1.7% from summer 2023 levels, according to federal officials.
Regional natural gas forwards continued to soar during the May 16-22 trading period in parallel to the recent bullish momentum lifting summer Nymex futures to new heights, data from NGI’s Forward Look show.
Regional natural gas forwards continued to soar during the May 16-22 trading period in parallel to the recent bullish momentum lifting summer Nymex futures to new heights, data from NGI’s Forward Look show.
Still groggy from the holiday, natural gas futures struggled to find direction on Wednesday. Amid a supportive backdrop of near-term heat and softening drilling activity, a host of bearish factors ultimately proved too much to overcome. The August Nymex gas futures contract settled 5.2 cents lower than Monday’s settlement at $2.657/MMBtu.