The Energy Buyer's Guide | 08.05.2024
NYMEX Futures Back Below $2.00 on Softer Temperature Outlooks.
- Natural gas futures pushed lower again, with benchmark NYMEX pricing finishing the week below $2.00 per MMBtu for the first time since April
- PJM capacity prices for the 2025/26 planning year came in at nearly $270 per MW-Day, which is an increase of more than 800% from current capacity prices (Link)
- Basis forwards and cash pricing in the Permian Basin were softer following news that the Matterhorn Express Pipeline would not start moving gas out of the area until October (Link)
- The Golden Pass LNG export terminal was delayed until “late 2025” due to contractor disputes, but there was limited price response as this result seemed to be already built into the forward curve (Link)
Natural gas futures continued lower, with benchmark pricing now losing ground in seven of the past eight weeks. The August 2024 NYMEX contract expired on Monday at $1.907 per MMBtu. This was the lowest expiration since May, dragging the 2024-to-date average to $2.118 per MMBtu. For reference, the first eight months of 2023 expired at an average of $2.707 per MMBtu. The September contract gave up its slim premium after rolling onto the front of the forward curve and notably finished out the week below $2.00 per MMBtu. This marks the first weekly settlement below that benchmark since April. Deferred seasonal strips lost ground as well, with Winter 24-25 and Summer 2025 each looking poised to test $3.00 per MMBtu when trading resumes.