Updated Aug 22, 2024
8/22/24
Weekly natural gas cash prices drifted lower despite sizzling summer temperatures across much of the Lower 48 and maintenance work in the Permian Basin that temporarily lowered production below the century mark.
The fairytale for the natural gas market is likely going to be a 2025 story as robust production and choppy demand continued to weigh down forward prices during the July 11-17 trading period, according to NGI’s Forward Look.
Freeport LNG Development LP had nominated more feed gas Tuesday in an indication that the plant is ramping up a day after a spokesperson said the facility would return to service in phases after it was damaged last week by former Hurricane Beryl.
An investigation into the emergency response by utilities to Beryl, which knocked out power to millions in Houston and surrounding communities after making landfall as a Category 1 hurricane, is underway following a push by Gov. Greg Abbott.
Weekly natural gas cash prices were higher amid demand impacted by a heat wave and former Hurricane Beryl, while a slow inventory reduction that was spooking the futures market empowered the bears.
Prompt-month natural gas futures were on track to end a three-day losing streak through midday trading Friday, pushed higher by short sellers taking chips off the table ahead of the weekend.
Against a backdrop of strong production, stout supplies in storage and a demand-thwarting hurricane, natural gas forward prices struggled for direction and ultimately gave up ground.
NO. 1: The Freeport LNG Development LP terminal on the upper Texas coast remained offline on Thursday for the fifth day in a row since it was shuttered on Sunday ahead of former Hurricane Beryl.
August natural gas futures were trading lower through midday Thursday after the latest weekly storage injection landed above historical levels.
August natural gas futures held to the downside Thursday following the U.S. Energy Information Administration (EIA) storage report for the week ending July 5, which outlined a 65 Bcf build, in line with the high end of expectations and above historical averages.