Natural gas futures were mixed to start the week. The October contract led the way, gaining 5 cents on the day to finish near $2.94 per MMBtu. This marked the highest daily settlement for prompt-month natural gas in more than a month as the market braces for a round of major late-summer heat. Beyond the front of the curve, price action was muted. The Winter 2026-27 strip finished the day virtually unchanged, while modest losses were posted farther out the curve.
With elevated power burn likely to stick around through at least this week, the market remains well supported. Storage injections for the week ended Friday, August 28, and the week ending September 4 are both projected to be relatively light, which could chip away at end-of-season storage expectations. However, with production back near record levels and weather-related demand set to fall off in the coming weeks, the market is not pricing in much lasting impact from the current stretch of heat.
An archive of Daily Natural Gas Market Notes can be found here.