Updated Sep 25, 2024
9/25/24
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.
With production strong and demand fading, natural gas futures fell prey to price bears once again.
March Nymex natural gas futures sank another 8.0 cents as the market searched for a low that would coax producers to trim output amid dashed hopes for enough cold weather to tighten supplies ahead of the shoulder season.
Exceptional warmth near-term and an enduring supply buffer kept the pressure on regional natural gas forward prices during the Feb. 1-7 trading period, according to NGI’s Forward Look.
If history repeats itself, the natural gas price recovery that took place after a 2019-2020 downturn could offer some insight into what may drive a recovery from a similar price routing in the 2023-2024 period, an NGI analysis shows.
Natural gas futures kicked off 2024 trading on Tuesday in rally mode, supported by forecasts for stronger heating demand and steady calls for U.S. LNG, though gains were held in check by stout supply.
January Nymex natural gas futures’ four-day winning streak ended Tuesday in losses driven by revised weather outlooks that erased some cooler, supportive weather from forecasts.
January Nymex natural gas futures staged a modest recovery Wednesday, but attempts at more considerable gains were thwarted by overall mild weather trends that pointed to comparatively small storage withdrawals as production stayed robust.
Click here to listen to the latest episode of NGI’s Hub & Flow, in which NGI Senior Markets Editor Kevin Dobbs interviews veteran natural gas trader Thomas Saal, senior vice president of energy at StoneX Financial.
Natural gas futures stumbled for a second session Tuesday as warm November forecasts kept hopes of higher winter heating demand at bay. The December Nymex natural gas futures contract fell 12.4 cents day/day to settle at $3.140/MMBtu. January fell 10.1 cents to $3.463.