Download the Energy Buyer’s Guide for full commentary and data relating to the U.S. and regional natural gas and power markets:
- Natural gas prices were down for the second straight week, with the prompt-month contract again testing support at $2.00 per MMBtu.
- Near-term weather forecasts call for major heat in the next few days that could lead to a new seasonal high in generation demand for natural gas. (Link)
- ERCOT set a new all-time peak last week, leading real-time power prices to post several intervals at the $5,000-per-MWh offer cap. (Link)
- Power futures were down across the board, with balance-of-2024 prices at or near multi-year lows in most market areas.
Prompt-month natural gas pushed lower for the second straight week, testing support near $2.00 per MMBtu. Prices staged a recovery on Monday and early Tuesday, but the market was ultimately unable to sustain any bullish momentum and selling pressure turned prices lower for the remainder of the week. The weekly price action solidified the boundaries of the near-term trading range, as Tuesday’s high of $2.278 per MMBtu was in line with demonstrated resistance, and Friday’s low of $2.005 per MMBtu confirmed psychological support surrounding the $2.00 level. In contrast with the previous week, which saw deferred futures trading weaker than nearby contracts, Winter 2024-25 was down by just $0.03 per MMBtu on the week, while Summer 2025 edged modestly higher. Both of the upcoming seasonal strips have seen support above $3.00 per MMBtu this summer, with the market so far unwilling to give up the steep premium compared to the front of the curve.