NYMEX natural gas futures ended the day higher, despite a weekly storage addition that surpassed market expectations. The October futures contract settled up $0.01 at $2.83 per MMBtu, breaking a 3-day losing streak that saw the prompt-month contract fall by more than $0.15 per MMBtu. Deferred futures were also higher, with the upcoming winter season gaining $0.03 to end at $3.34 per MMBtu while Summer 2027 edged higher by $0.01 to close at $3.04 per MMBtu.
Today’s natural gas storage report showed a larger-than-expected build into underground inventories, with the reported 40 Bcf addition exceeding the average expectation of 28 Bcf as reported by the Wall Street Journal’s survey. When adjusting for weather, today’s storage build registered as the loosest since the week ending July 10 suggesting the heat-induced tightening of the supply/demand balance may be easing.
Looking ahead, weather will likely play a reduced role as a price driver as September progresses and temperatures moderate. That is, until the market begins to look ahead to winter and the potential for residential and commercial heating demand.
An archive of Daily Natural Gas Market Notes can be found here.