Updated Aug 30, 2024
8/30/24
Senior Editor, Markets
Charleston, SC
Pipeline operator Kinder Morgan Inc. (KMI) is moving ahead with a major natural gas pipeline expansion to serve growing demand from the electric power sector in the Southeast.
More natural gas is flowing to a key export terminal along the Texas coast following the in-service earlier this month of WhiteWater Midstream LLC’s Agua Dulce-Corpus Christi (ADCC) pipeline.
Weekly natural gas cash prices were higher amid demand impacted by a heat wave and former Hurricane Beryl, while a slow inventory reduction that was spooking the futures market empowered the bears.
August Nymex natural gas futures were higher Friday, abruptly ending a three-day routing to close the week with a 6.1-cent gain, as traders covered short positions and anticipated a demand boost.
August Nymex natural gas futures deepened losses Thursday despite excessive heat across much of the country. The market appeared to defy the outlook for heavy gas demand in favor of robust supplies.
August natural gas futures held to the downside Thursday following the U.S. Energy Information Administration (EIA) storage report for the week ending July 5, which outlined a 65 Bcf build, in line with the high end of expectations and above historical averages.
With Texas still recovering from former Hurricane Beryl and dangerous heat bearing down across parts of the country, a demand-side struggle ahead of the latest storage data had natural gas futures seesawing before finishing Wednesday modestly in the negative.
Natural gas futures reversed early gains in an apparent shrugging off of the impacts of former Hurricane Beryl as the market focused instead on revised weather outlooks that erased cooling degree days (CDD), even as excessive heat is expected to grip large portions of the country.
August Nymex natural gas futures settled up 5.2 cents on Monday in a relief rally following eight days of decline.
August natural gas futures began the week deep in oversold territory but with a clear line of sight on the next key technical support level should Hurricane Beryl cause significant demand destruction.