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The Weekly Natural Gas Market Newsletter August 23, 2021

September 2021 NYMEX futures traded in about a 25-cent range for the week but ultimately settled only a penny lower for the week. Since posting a high of $4.205 earlier in the month, the September contract has been in a moderate downtrend as the contract now appears to be attempting to test some previously established levels of technical support.

For the week ending 8/13, the EIA reported an injection of 46 BCF. Storage inventories are now 16.2% below year ago levels and 5.8% below the previous 5-year average. Working levels of storage are still predicted to be slightly below normal heading into the upcoming winter heating season.

The tropics have increased in activity as several named storms have made a presence. Tropical Storm Fred was a rainmaker last week. Former Hurricane and now Tropical Storm Henri has targeted the Northeast and will impact electricity demand in the region. This is mildly bearish for natural gas and could have some relevance on the storage report for week ending 8/27.

With the September contract probing support at $3.80 and $3.70, trading pull backs should be deemed as a hedging opportunity. Covering open September exposure is advised.