The Weekly Natural Gas Market Newsletter July 12, 2021
The Weekly Natural Gas Market Newsletter
July 12, 2021
Natural Gas News & Notes
The August 2021 NYMEX natural gas future's contract ended the week up 1.3 cents settling at $3.674. The contract hit a fresh 52 week high of $3.822 early in the trading week on Monday but lost some steam by Friday. The contract traded to a low of $3.52 before finding some buying support at that level.
The contract also got a jolt from the weekly EIA storage report which saw an injection of only 16 BCF. Market expectations were for an injection in the 25 BCF range. The extremely warm weather seen for the week ending 7/2 coupled with some production dips on the heels of some unexpected gas processing plant closures in the Marcellus shale region, contributed to the low injection figure. Storage levels are now 17.6% lower than last year's level currently and are 6.9% lower than the previous 5-year average. Concerns about reaching "normal" storage levels heading into the upcoming winter 2021/2022 time period are starting to become a hot topic of conversation among many energy analysts.
Resistance for the August 2021 contract is
seen at $3.82 and then at the psychological
$4.00 level. Support is seen at the $3.52 and
$3.43 level. It is expected that these support
levels would hold if tested. Exposure to the
August contract should be covered if these
levels are tested.