Updated Aug 22, 2024
8/22/24
Natural gas futures closed near flat after gyrating on both sides of even Friday as a foot race between hot summer demand and rising production continued to play out in setting market balances.
Natural futures forged ahead early Thursday but leveled off, and by early afternoon, were trading in the red following a lean government inventory print. Spot prices were nearly flat at midday.
Natural gas futures slumped lower for a third straight session on Thursday, hindered by a bearish storage print relative to expectations and elevated supply levels overall.
Natural gas futures traders on Tuesday took profits and snapped a winning streak after the prompt month had rallied nearly 20 cents over the three prior sessions.
Natural gas futures nosedived on Wednesday despite waning production levels and expectations for a seasonally small increase in underground inventories.
Natural gas futures bounced off seasonal lows on Tuesday, advancing for only the third time this month amid lighter production readings, bullish storage expectations and signs of new activity at a key export facility following damage caused by former Hurricane Beryl.
Against a backdrop of strong production, hefty supplies in storage and a demand-thwarting hurricane, natural gas forward prices struggled for direction and ultimately gave up ground.
Forecasts for near-record cooling demand in the month ahead failed to propel natural gas futures forward on Friday, as export volumes were in question and production held at strong levels.
The August Nymex natural gas futures contract, at the front of the curve for the first time on Thursday, traded in a narrow range of gains and losses much of the session, but ultimately lost further ground as supply/demand imbalance concerns festered.
The July natural gas futures contract finished its front-month run with a whimper on Wednesday. Bullish weather forecasts were countered by solid production and uncertainty about LNG export volumes ahead of the next government inventory print.