Updated Aug 22, 2024
8/22/24
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.
Weekly natural gas cash prices dropped in the final week of June – after rallying through the first three weeks of the month – despite exceptional early summer heat and forecasts for more to come.
Natural gas forwards advanced across portions of the East from June 13-18, bolstered by sweltering forecasts and a new pipeline expanding the reach of Appalachian Basin gas, according to NGI’s Forward Look.
Weekly natural gas cash prices moved higher as hot weather in the West gave the country its first decent bout of the summer-like cooling demand. Futures, anticipating more sweltering heat in the weeks ahead, leapt higher.
As forecasts continued to point to widespread cooling demand potential by mid-June, natural gas futures were headed for a third consecutive positive session through midday trading Friday.
Natural gas futures on Wednesday jumped on late-June forecasts turning hotter as bulls and bears traded control of market direction for a fourth session.
June Nymex natural gas futures fluctuated on either side of unchanged early Tuesday and ultimately closed on the plus side as traders positioned ahead of the contract’s Wednesday expiration with fundamentals supporting.
Weekly natural gas cash prices were mixed, as a preview of summer weather sent demand higher in portions of the country, and pipeline maintenance underway or ending provided varied directional support.
A durable run higher for natural gas futures could take longer as technical indicators suggest bullish strength butting against fundamental pressures.
Natural gas futures were higher at the top of the week as searing heat blanketed much of the Lower 48, challenging record power loads and stressing grids. The September Nymex gas futures contract settled Monday at $2.632/MMBtu, up 8.1 cents from Friday’s settlement. October futures climbed 5.2 cents to $2.743.