Updated Aug 22, 2024
8/22/24
By Chris Newman
onNatural gas futures pushed higher Wednesday as traders positioned for a possible rare midsummer storage draw that would add further evidence of tightening market balances.
Chris Newman joined NGI in October 2023. He worked 18 years at Argus Media, starting in 2004 in Washington, D.C., where he covered U.S. thermal/coking coal markets and rail transportation. In 2014, he moved to Singapore to help lead Argus’ coverage of steel and its raw material feedstocks. A graduate of the University of Virginia, Chris returned to his native Virginia in 2021.
Unable to gain traction, September Nymex natural gas futures saw early Wednesday gains ebbed away in favor of modest losses as tides were turning on fundamentals with lingering weather support expected to drift away into the fall shoulder season.
Permian Basin benchmark Waha cash prices, mired in a protracted slump amid limited natural gas takeaway capacity and a supply glut, may see the summer come and go without relief. But a massive new pipeline is slated to enter service this fall, promising to free up an abundance of associated gas and ease pricing pressure.
Natural gas futures traded in a narrow band early Wednesday as traders contemplated favorable late-summer fundamentals alongside the specter of fall weather and the inevitable swoon in cooling demand that it delivers.
September Nymex natural gas futures’ early attempt to extend a rally into Tuesday’s session failed amid expectations for demand weakness as weather outlooks pointed to increasingly mild conditions across major natural gas-consuming regions.
Technical indicators appear to support a positive outlook for natural gas prices at least in the short term, but cautious traders could decide to enter the market only when the price moves above key resistance levels, according to technical analysts.
Natural gas futures traded up a few cents early Tuesday as market participants digested an uneven weather demand forecast, a dip in production and ongoing progress toward addressing a supply overhang.
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