Updated Sep 25, 2024
9/25/24
Natural gas futures swung between gains and losses before taking a decidedly higher turn in early afternoon trade Tuesday. Market participants attempted to gauge the impact of weather, LNG and a downward shift in Lower 48 gas production. Spot prices advanced coming off of the Labor Day weekend.
Price risk is to the upside as the downtrend in natural gas futures shows signs of exhaustion, according to technical analysts. However, they warned that market bulls should proceed cautiously, while keeping eyes on producers who may hold the key to a more sustained rally.
A five-day losing streak has sent September natural gas futures below the $2/MMBtu level for the first time since early August, but bulls might get breathing room after the contract rolls off the board Wednesday.
Coming off a slump the week before, natural gas futures extended their losing ways through early afternoon trading on Monday. Market participants fixated on early signs of fall weather and robust supplies. Near-term heat, however, propelled cash prices.
Bears maintained control in the week’s closing session as natural gas futures fell deeper amid growing concerns that mild weather would ease demand and limit the ability to wear away a hefty storage surplus.
September Nymex natural gas futures careened lower Friday as the market focused on milder weather forecasts over an improved pace of storage tightening signaled by the latest inventory report.
Natural gas forward prices maintained a bearish tenor in parts of Texas and the West, but an atypical summer storage withdrawal and increased focus on the approaching winter cast a bullish hue elsewhere to send prices broadly higher.
Natural gas futures were down in early trading Friday as the market shifted its attention away from Thursday’s bullish storage print to moderating summer heat next week.
Natural gas forward prices maintained a bearish tenor in parts of Texas and the West, but an atypical summer storage withdrawal and increased focus on the approaching winter cast a bullish hue elsewhere to send prices broadly higher.
Natural gas futures pushed higher Thursday after the U.S. Energy Information Administration (EIA) reported a rare summer withdrawal of 6 Bcf from storage for the week ended Aug. 9.