The Weekly Natural Gas Market Newsletter July 19, 2021
The Weekly Natural Gas Market Newsletter
July 19, 2021
Natural Gas News & Notes
The August 2021 NYMEX natural gas future's contract traded flat on the week after trading in nearly a 20-cent range. The contract saw a high of $3.77 early in the trading week and a low of $3.58 on Friday morning before settling at $3.674 for the week. The contract has been stuck in about a 30-cent range bound trade between $3.50 and $3.80 since the beginning of July. The contract has attempted a breakout in both directions but has been unable to do so yet.
The weekly natural gas storage report indicated an injection of 55 BCF for the week ending 7/9. This was a bit higher than expected as analysts had projected a build in the mid 40 BCF range. Despite what would be deemed as a "good" miss for storage, inventories are still 17.1 % below year-ago levels and 6.7% below the previous 5- year average.
The Aug21 contract looks to continue its range
bound trade this week. The contract sill has
more upside price risk than downside price gain.
Support in the $3.55-$3.60 range should hold and
is deemed as a solid buying level for end-users
with any open exposure for August. With the
heart of summer still looming, a surge in gas fired
power generation to meet the cooling demand is
expected. The probability of seeing a $4.00 price
point on a prompt month NYMEX contract
looks extremely likely in the coming weeks.