NYMEX August gas contract works out 9.8 cents lower on storage space, weather conditionPosted by Lancaster Holme on February 24th, 2021 The NYMEX August natural gas futures agreement worked out 9.8 cents reduced at .357/ MMBtu Wednesday as the market wanted to one more strong storage space injection and also milder weather prediction for much of the US right into mid-July. "Gas futures are heading lower today in response to long-range cooler weather forecasts," said Aaron Calder, senior market expert at Gelber & Associates. Fine_chemical Surging manufacturing, which was expected, and also very light weather, which was not, is pushing the agreement near its floor." While near-term weather is expected to be muggy and also hot in much of the country, WSI in its 11- to 15-day projection expects above-average warm to be mostly constrained to the West. "We do not prefer any type of prolonged warmth occasions throughout the central-eastern US," the private forecaster noted. Furthermore, the majority of analysts that Platts questioned are expecting the United States Energy Details Management Thursday to report a storage space shot in the 99-103 Bcf variety for the week ended Friday-- well above both the 76 Bcf reported a year ago and also the 68 Bcf five-year standard. Such a construct might mark the eighth triple-digit injection straight, experts noted. " We're turning much more bearish on this market," said Elaine Levin, president of brokerage firm PowerHouse. "Historically, the best day of the year happens in the next couple of weeks, as well as taking a look at the [weather condition] maps we're seeing some heat, but once again it will only be for a day or 2. We just can not maintain it." With storage space "showing up at a pretty good clip as well as an absence of any continual weather, it's making the bears pleased," Levin added. " Natural gas is relatively in additional time-- on the ropes and also defensively (fundamentally and also practically) weak-- although summertime's just begun," stated independent analyst Jay Levine of Enerjay. But "I stay confident ... that the downside in natural [ gas] is limited and also confident that there will be a collection of days when summer season heat will certainly fire up one more rally in all-natural [ gas] soon," Levine stated. "It could not occur today ... as well as it might not happen tomorrow, however it's gon na take place among nowadays." "Obviously, I also assumed that the US was mosting likely to win the other day," Levine added. specialty chemical companies traded Wednesday between .338/ MMBtu and also .459/ MMBtu. The NYMEX negotiation is considered preliminary and also subject to transform till a last negotiation price is published at 7 pm EDT (2300 GMT).Like it? Share it! More by this author |