Natural Gas Market Note | 07.14.2026
Futures hold steady ahead of a brief heat wave.
Natural gas futures were virtually unchanged on Tuesday, with limited movement across the curve. The August 2026 contract inched higher by about a penny to finish near $2.91 per MMBtu. Deliveries further into the future lost modest ground, with Winter 2026-27 falling by 2 cents to settle near $3.59 per MMBtu and remaining near multi-year lows.
Tomorrow could be the hottest day of the summer so far on a population-weighted basis. Peak load in PJM is currently forecast to reach 164 GW, which would approach all-time record levels. During the previous heat wave in June, power generation demand for natural gas came in lower than expected due to strong wind output in the Midwest and Texas. Recent summers have featured several days when generation demand spiked above 50 Bcf per day, but that threshold has not yet been crossed this season. If gas demand again disappoints amid extreme heat in the coming days, it could prompt the market to further reassess seasonal fundamental risk.
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