Updated Aug 22, 2024
8/22/24
Senior Editor, Markets
Charleston, SC
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.
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.
Demand in the crosshairs of the approaching fall held enough support Monday alongside signs of tighter supply to drive natural gas prices higher.
Weekly natural gas spot prices crept higher in the week as regional hub values varied amid changes in weather forecasts that pulled back the number of cooling-degree days expected as the calendar drifts from summer closer to fall.
September Nymex natural gas futures careened lower Friday as the market focused on milder weather forecasts over an improved pace of storage tightening signaled by the latest inventory report.
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.
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.
Permian Basin pure-play Kinetik Holdings Inc. revised its 2024 guidance after seizing opportunities in New Mexico and the Delaware sub-basin in the second quarter, and increasing processing volumes despite challenges from anemic natural gas prices at the Waha hub.
Climbing for a fifth consecutive trading session on Monday, natural gas futures could still have more room to move higher, according to technical analysts. However, they warned that the road to a sustained rally could be rocky.