Natural Gas News – July 30, 2024
Natural Gas News – July 30, 2024
$2.00 Level Under Siege as Bearish Trend Persists
Record-breaking August heat fails to boost natural gas prices as persistent supply surplus dominates market sentiment Natural gas production holds steady at 102 Bcf/d, contributing to a 16% storage surplus above the five-year average Texas LNG finalizes major agreement for 50% of future terminal capacity, potentially enhancing export capabilities Despite 14% decrease in national rig count, 20% surge in rig productivity leads to lower prices and 2,000 job losses Traders closely watch $2.00 price level as potential support or breakdown point amid conflicting market forces Natural gas futures continued their downward trend on Tuesday, with traders grappling over the significance of the $2.00 price level. The market faces conflicting forces of record-breaking heat and persistent supply surpluses, creating a complex tr… For more information, go to https://tinyurl.com/bdnr4em6
NYMEX gas futures trade under $2 as August contract expires
The expiring NYMEX August gas futures contract dipped below $2 July 29, its final day of trading, marking the prompt month’s lowest since early May as the outlook for summer gas prices turns increasingly bearish. During the afternoon session, August Henry Hub futures fell to just $1.85/MMBtu on low trading volume. The soon-to-be prompt September contract, where most of the volume was focused, also came under pressure July 29, hitting an intraday low around $2, data from CME Group showed. Earlier this summer, prompt-month gas futures traded as high as $3.13/MMBtu while prices for August topped $3.19, according to Platts assessments from S&P Global Commodity Insights. In the seven weeks since, gas prices have moved steadily lower amid concerns over mounting spot-market supply. Arguably, risi… For more information, go to https://tinyurl.com/3thb77a6
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