Updated Aug 22, 2024
8/22/24
Natural gas futures seesawed in a narrow range of gains and losses for a second straight session on Wednesday. The prompt month hovered in the red by early afternoon trading as market participants weighed expectations for strong late-August cooling needs and bullish supply trends against expectations for retreating demand in the fall.
Coming off an 11.2-cent rally the previous session, natural gas futures probed a few cents higher early Tuesday on lower production estimates. But the prompt month failed to sustain momentum as traders focused on weaker near-term demand and took profits. Cash prices also trended lower at midday.
Natural gas futures accelerated declines through midday trading Friday, undercut by weakness in physical cash markets and forecasts for milder weather next week.
Natural gas futures rallied after a government report showed a remarkable August decrease in storage. Analysts interpreted it as a bullish sign of supply/demand tightening after a hot summer and lower production levels. By early afternoon, however, profit-taking dropped the front month into a narrow range of gains and losses.
Natural gas futures rallied early Tuesday, bolstered by late August heat forecasts and expectations for a paltry storage result. However, after five days of gains, traders took profits by midday and sent the prompt month lower.
While the market remains flush with supply, signs of favorable fundamental shifts caught the attention of money managers and powered a natural gas futures rally that spanned most of last week and through early afternoon trading Monday.
Natural gas futures on Thursday fell early but gained ground through midday trading as a bullish government assessment of supplies in storage overshadowed near-term weakness in weather demand. However, the prompt month then retreated to near even in early afternoon trading. Spot prices slipped.
Natural gas futures advanced early Wednesday and kept momentum rolling through midday trading. The prompt month headed for a second daily advance. The cash market posted modest gains in most regions, meanwhile, though West Texas showed customary losses as supplies backed up amid maintenance work.
Natural gas futures mustered momentum on Tuesday – after losing ground the day before and last week – amid lighter production readings, bargain buying and short covering.
Natural gas futures hovered in the red through midday trading on Monday amid waning demand – including dampening effects from Hurricane Debby – while supply flowed at steady levels. Spot prices declined in the Southeast.