The Energy Buyer's Guide | 07.29.2024
August 2024 trades a new all-time contract low with one day left beofre expiration.
- Natural gas futures pushed lower yet again last week amid a stretch of mild temperatures across the eastern half of the country, with the August 2024 NYMEX contract finishing the week at its all-time low.
- Temperature forecasts are calling for a return of more widespread heat in August, but more recent model runs suggest that the pattern may not be as bullish as previously expected.
- The 22-Bcf build in natural gas inventories announced Thursday came in stronger than market expectations but fell shy of historical benchmarks.
- Spot natural gas and power prices were lower compared to the previous week in every region outside of the West, where lingering heat and tighter market conditions are providing strong support.
Natural gas futures were down again last week. Prices pushed higher on Monday, but the market failed to sustain any upward momentum, falling lower in each of the final 4 trading days of the week. The August 2024 contract finished on Friday less than a penny above the $2.00-per-MMBtu level, representing that contract’s all-time low with just one day of trading left before expiration. Meanwhile, the upcoming Winter 2024-25 and Summer 2025 strips rounded out the week at their lowest levels in more than two years.