Updated Sep 25, 2024
9/25/24
Prompt month natural gas futures marched higher Monday as risks to supply from a developing Gulf Coast storm added to pipeline issues and bullish weather revisions in tightening up market balances.
Natural gas futures rocketed to a six-week high midweek amid ongoing heat in Texas, technical support and continued soft production in the wake of pipeline maintenance events. The September Nymex gas futures contract settled Wednesday at $2.959/MMBtu, up 18.2 cents on the day. October climbed 18.9 cents to $3.053.
Natural gas futures bounced around Wednesday after weather models added a large chunk of demand to the long-range outlook, with frigid Canadian air forecast to plunge into the Lower 48 next week. After a sharp rally overnight lost momentum, confirmation in the midday data sent the January Nymex gas futures contract roaring higher and ultimately to a $5.723/MMBtu settlement. February futures shot up 23.9 cents to $5.617.
Petroliam Nasional Berhad, aka Petronas, has declared force majeure on supplies from its Malaysia LNG (MLNG) facility due to a pipeline leak, which could add more pressure on Asian and European liquefied natural gas buyers looking to cover before the winter season.
The operator of Ukraine’s natural gas grid reported Tuesday it would have to suspend service at a critical point for gas transport through the country because of Russia’s increased “military aggression.”
Natural gas traders were on high alert Tuesday as Hurricane Laura churned toward the Gulf Coast, with impacts to supply and demand reverberating across the market ahead of the storm’s projected landfall late Wednesday or early Thursday.
As oil prices plunged on Monday and sent global energy markets into turmoil, plenty of implications were seen for liquefied natural gas (LNG), including the possibility of higher prices for U.S. buyers and relief for offtakers overseas.
A force majeure declared Tuesday on the Rockies Express Pipeline (REX) system remained in effect Wednesday morning and has resulted in an approximately 1.1 Bcf/d reduction in east-to-west flow from the recent throughput level of 1.8 Bcf/d.