Updated Sep 25, 2024
9/25/24
Senior Editor, Markets
Charleston, SC
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 soon-to-expire October Nymex natural gas futures contract reversed overnight gains, ticking a few cents lower early Tuesday on the heels of an impressive 17.9-cent advance Monday. Gains were motivated by the uncertain impact of a large storm system in the Gulf of Mexico (GOM) and a tight market balance.
October Nymex natural gas futures surged through early afternoon Monday, bolstered by the potential for production disruptions later this week, with another storm brewing in the tropics.
Petrochemical giant Dow Inc. said lower North American natural gas prices are driving an expansion of operations. Meanwhile in Europe, “right-sizing” the footprint “is necessary” with industrial demand still 25% off pre-pandemic levels.
Natural gas futures rocketed through midday trade Friday in a volatile session that saw the contract sink as low as $2.314/MMBtu and rise as high as $2.440. Changes in supply and demand fundamentals drove wide swings.
Natural gas futures returned to meandering Friday but held above previous resistance at $2.300/MMBtu through early trade. The seesawing followed Thursday’s gains on a bullish storage print, while focus returned to the tropics, where threats to production and demand loomed.
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.
October Nymex natural gas futures drifted on either side of the prior day’s settlement early Thursday as the market awaited the latest storage data for more definitive directional support.
Another attempt by market bulls to pull October Nymex natural gas futures higher ran into a wall Wednesday afternoon as bears resumed control. The market had a muted response to the Federal Reserve’s (Fed) interest rate cut decision while moving lower on weaker demand.
October Nymex natural gas futures took another stab at the upside early Wednesday. Still, gains were likely to be hard-won as the market wrestled with changing fundamentals and searched for the next major price catalyst.