Updated Aug 30, 2024
8/30/24
Natural gas futures floundered on Tuesday as the domestic weather outlook shifted increasingly bearish, production ticked up and energy commodities broadly dipped lower amid pandemic flare-ups and the potential for a cease-fire in Ukraine.
Natural gas prices drifted lower early Monday and held there as traders assessed evolving weather patterns and the potential for storage injections against flat production and ongoing robust demand for U.S. exports.
Natural gas prices advanced for a second day, as traders on Tuesday absorbed a favorable shift in weather forecasts and record demand for U.S. liquefied natural gas (LNG) exports. The April Nymex gas futures contract gained 28.7 cents day/day and settled at $5.187/MMBtu. May rose 29.3 cents to $5.227.
Natural gas futures dived lower for a second straight session on Tuesday amid warmer weather patterns and the potential for storage injections over the coming weeks. The April Nymex gas futures contract settled at $4.568/MMBtu, down 9.0 cents day/day. May fell 8.5 cents to $4.617.
Natural gas futures slipped lower for a second consecutive day, as traders continued to focus on bearish shifts in domestic weather outlooks even as war raged in Ukraine and Western sanctions against Russia threatened to send global commodity prices to record highs.
Natural gas prices bounced back Tuesday amid potential for even stronger demand for U.S. exports of liquefied natural gas (LNG) against the backdrop of Russia’s invasion of Ukraine and the specter of European supply disruptions as the war raged into a seventh day.
Natural gas strengthened after the extended holiday weekend as cold, rainy winter blasts continued to move across the country. With heightened geopolitical tensions driving a broader spike across commodities, the March Nymex gas futures contract settled Tuesday at $4.498/MMBtu, up 6.7 cents from Friday’s close. April futures climbed 8.4 cents to $4.461.
Natural gas futures were choppy Tuesday. Prices swung sharply higher early on the increasing potential for cold weather to linger into early March, but then retreated significantly as part of a broader commodities sell-off amid easing political tensions. The last half hour of trading brought another surge following the latest weather data, with the March Nymex gas futures rallying 11.1 cents to a $4.306/MMBtu settlement. April ticked up 8.1 cents to $4.241.
Natural gas futures rebounded Tuesday – but not by much – after weather data teased that Old Man Winter had a few more rounds in him. After climbing as much as 15.0 cents day/day, the March Nymex gas futures contract ultimately settled only 1.6 cents higher at $4.248.
Natural gas prices dived lower Monday as traders assessed expectations for warmer weather patterns and the potential for weakening demand over the coming weeks. The March Nymex gas futures contract settled at $4.232/MMBtu, down 34.0 cents day/day. April fell 29.4 cents to $4.198.