Updated Aug 30, 2024
8/30/24
Asian buyers are seeking more LNG spot cargoes and shoring up long-term supply while Europe awaits the impacts from further cuts of Russian natural gas imports and global terminal outages.
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.
Energy Transfer LP is expanding its access to Permian Basin natural gas and natural gas liquids (NGL) in a $3.25 billion deal to acquire WTG Midstream Holdings LLC from a subsidiary of independent Diamondback Energy Inc. and investment firm Stonepeak.
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.
Coming off heavy selling late last week and with front month expiration looming, natural gas futures were close to unchanged early Tuesday as traders eyed the stronger production and mixed June forecast trends.
Weekly spot natural gas prices notched gains as intensifying heat in portions of the country stoked cooling demand. Futures surged in anticipation of the rising summer load but sank into the week’s end on profit-taking.
June Nymex natural gas futures continued to sputter Friday after rising early Thursday to their highest price level since mid-January before finishing sharply lower.
Natural gas prices pushed higher in key regions during the first day of June bidweek trading on Friday as production leveled off below 100 Bcf/d, storage surpluses narrowed and forecasts pointed to a hot start to summer.
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.
With traders maneuvering ahead of a long holiday weekend, natural gas futures were headed for a second straight sell-off through midday Friday. Steep discounts were dominant in the physical market on deals for delivery over the Memorial Day break.