U.S. Natural Gas Futures Lose More Ground

Wall Street Journal

2 days ago

1527 ET – U.S. natural gas futures recover some early losses but still settle lower as the market awaits clearer signs of more hot weather and LNG export growth. 'The market has been forced to discount a normal or possibly mild summer that would allow storage to build at a strong, steady pace,' Ritterbusch says in a note. This week's data are likely to show a slight decline in the inventory surplus, although 'guidance beyond this week suggests a return to some larger than normal injections.' Production is holding near record levels, and LNG exports 'are not yet showing the effects of the long-awaited increased capacities,' the firm adds. Nymex natural gas settles down 1.2% at $3.415/mmBtu. ([e-mail])
1000 ET – U.S. natural gas futures continue to lose ground with production picking up while storage levels remain in surplus after a solid spring injection season. Prices have been a 'no win trade' for bulls with inventories more than 6% above the five-year average and strong wind and solar generation filling the void to meet power demand from heat in the Midwest and the East, Dennis Kissler of BOK Financial says in a note. Still, heavy fund shorts put on in recent sessions leave 'a lot of upside room for short-covering that could be triggered if we see the current heat wave stay in place,' he adds. Nymex natural gas down is down 3.4% at $3.337/mmBtu. ([e-mail])