Updated Aug 22, 2024
8/22/24
By Kevin Dobbs
onNatural 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.
The September Nymex gas futures contract was up 1.3 cents to $2.211/MMBtu at around 8:30 a.m. ET.
A day earlier, the prompt month shed 3.7 cents. NGI’s Spot Gas National Avg. similarly slipped 3.5 cents to $1.625.
Kevin Dobbs joined the staff of NGI in April 2020. Prior to that, he worked as a financial reporter and editor for S&P Global Market Intelligence, covering financial companies and markets. Earlier in his career, he served as an enterprise reporter for the Des Moines Register. He has a bachelor's degree in English from South Dakota State University.
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.
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.
Demand in the crosshairs of the approaching fall held enough support Monday alongside signs of tighter supply to drive natural gas prices higher.
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