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.
Demand in the crosshairs of the approaching fall held enough support Monday alongside signs of tighter supply to drive natural gas prices higher.
August natural gas futures pushed higher in early trading Monday as weather forecasts turned hotter and U.S. LNG exports were expected to quickly rebound after a 2 Bcf/d dip from Hurricane Beryl.
Coming off six straight lower sessions, August natural gas futures were wavering between gains and losses early Wednesday ahead of an expected light build in the weekly government inventory report.
Natural gas prices advanced in July bidweek trading as forecasts called for strong early summer heat to further intensify and cover more of the Lower 48 in the month ahead, offsetting rising production volumes and stout supplies in storage.
Drops in natural gas production, declining storage surpluses and stronger summer weather demand in the Lower 48 and abroad all line up in bulls’ favor. These factors could prop up prices through the cooling season and potentially longer, a cadre of analysts agreed this week.
June Nymex natural gas futures climbed with the mercury as hot weather supports cooling demand, driving prices to four-month highs.
A durable run higher for natural gas futures could take longer as technical indicators suggest bullish strength butting against fundamental pressures.
Natural gas futures flipped to gains and losses through midday trading Friday as the market weighed opposing LNG factors. For bears, interruptions to work at the Golden Pass liquefied natural gas project fed speculation about potential delays, while bulls cheered Freeport starting up a third train.
Natural gas futures were trading lower early Friday as uncertainty over near-term weather demand shifted attention away from a rebound in Freeport LNG feed gas flows and Thursday’s bullish government storage report.