Updated Sep 25, 2024
9/25/24
October Nymex natural gas futures fluctuated between gains and losses Tuesday before turning lower as profit taking, hurricane risks and middling demand choked off some of the rocket fuel powering the previous three days’ nearly 33.0-cent run higher.
October Nymex natural gas futures floated from gains to losses during Tuesday afternoon trading. The market was caught between prospects of significant demand destruction and production shut-ins as Tropical Storm Helene formed over the Caribbean. Cash prices were mixed by varied demand.
The October natural gas futures contract flew higher on Monday, building on the prior week’s rally and remaining comfortably above a key technical threshold. It settled at $2.613/MMBtu, up 17.9 cents day/day. This followed back-to-back gains to close out last week.
Prompt month natural gas futures rose for a second day on Friday, supported by tight market balances and another storm threat to offshore gas supply possibly arriving next week.
Lower production and a narrowing storage surplus fell short of countering forecasts for mild fall weather, leaving natural gas forward prices to probe lower.
Natural gas futures were lower ahead of and shortly after Thursday’s inventory report landed heavier than expectations, but prices ultimately regained their footing and pushed higher as the injection was lighter than seasonal norms, underscoring a tighter path for supply.
Lower production and a narrowing storage surplus fell short of countering forecasts for mild fall weather, leaving natural gas forward prices to probe lower.
Bulls took control of the market Thursday afternoon after October Nymex natural gas futures briefly tumbled to an intraday low at $2.223/MMBtu following a reported storage build of 58 Bcf for the week ended Sept. 13.
The U.S. Energy Information Administration (EIA) on Thursday reported an injection of 58 Bcf natural gas into storage for the week ended Sept. 13. The result, above median expectations, initially sent futures lower.
Prompt month natural gas futures fell for a second day Wednesday as the market stayed focused on shifting autumn supply/demand balances, sidestepping a broad rally sparked by the Federal Reserve’s (Fed) aggressive start to an interest rate-cutting cycle.