Natural Gas Futures Rally as Summer Makes Possible Last Stand, Supply Tightens; Cash Varies
Demand in the crosshairs of the approaching fall held enough support Monday alongside signs of tighter supply to drive natural gas prices higher.
Demand in the crosshairs of the approaching fall held enough support Monday alongside signs of tighter supply to drive natural gas prices higher.
Natural gas futures on Monday advanced through early afternoon trading, propelled by forecasts for widespread heat in late August, lighter production and expectations for another big sign of tightening supply/demand with Thursday’s government inventory data. Spot prices also advanced.
Natural gas forward prices maintained a bearish tenor in parts of Texas and the West, but an atypical summer storage withdrawal and increased focus on the approaching winter cast a bullish hue elsewhere to send prices broadly higher.
Energy Transfer LP is expecting to make a final investment decision (FID) within months on the proposed 1.5-2.0 Bcf/d Warrior Natural Gas pipeline to move supply from the Permian Basin.
TC Energy Corp. is transporting record volumes of natural gas on its Canada, U.S. and Mexico pipeline systems, and expects demand growth to accelerate over the coming years, according to management.
Pacific inventories of underground natural gas remain elevated relative to historical norms – but far less so than any other region.
North American natural gas futures were stuck again this week as persistent supply surpluses did little to excite bulls.
Natural gas futures, suppressed for most of July amid stronger production and supply surpluses, finished the month on a sour note.
August natural gas futures dropped below $2.00/MMBtu as near-term bearishness persisted, but shifts in sentiment and technical indicators implied higher prices when the September contract moves into the lead position on Tuesday.
Baseload natural gas prices continued to be mixed on Friday, the second day of August bidweek trading, with the bias to the downside at hubs in major producing regions.