Latest News & Insights
Despite heat domes and hot temperatures blanketing most of the U.S., the market slipped lower last week. The August contract expired on Wednesday at $2.725, down 5% in its final three days of trading. The new prompt September contract drifted lower as well, closing Friday at $2.747 with the back of the curve sliding also.
Warm temperatures and cooling demand have been strong, but the need for gas is being offset by strong output from renewables. Additionally, despite a lower-than-expected injection of 28 Bcf reported by the EIA this week, storage levels are in good shape and production levels continue to be at record highs. Additionally, reduced LNG production and exports are adding to the supply surplus. Please reach out with any questions.
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July Market Report
The July contract expired on Friday at $3.231, just slightly down from the previous week, but a bumpy ride nonetheless. Similarly, the balance of the curve was slightly lower as well.
To begin the week, there was mixed news on the weather, although a "heat-dome" is emerging over the Central U.S. and moving East slowly as we head into the holiday weekend. Both an increase in the rig counts and a higher-than-expected storage injection led to weakness, as well as some profit-taking heading into expiration. That weakening trend has spilled over into this morning to start out the week. We hope you all enjoy some time off later this week as we celebrate America 250! Thanks for your continued business.
June Market Report
The June contract was a bit volatile to the upside in its final two days of trading, rolling off Wednesday to settle at $3.04, a 4.6% gain. July took over as the prompt contract and continued to rise, closing out the shortened trading week at $3.29, up nearly 9%.
Ongoing Middle Eastern tensions, warming temperatures in the upcoming six to ten-day forecast, a modest 92 Bcf storage injection, and expectations for increasing LNG export volumes led to the bullish sentiment in the market. Today is also the official kick-off of the 2026 hurricane season, which NOAA has predicted to be lighter than normal. The curve is mixed to start off this morning.
May Market Report
The May contract expired mildly higher on Tuesday to settle at $2.559. June took over and traded lower to start but rallied a bit as the week went on to close out Friday at $2.78, a gain over 3.6%. The summer was up 2.7% and the one- and two-year strips were up 1.6% and 1%, respectively.
The market has been largely trading sideways on mixed fundamentals. The EIA posted an injection of 79 Bcf, generally in line with expectations, but inventories are ahead of both the one- and five-year averages. Both LNG exports and production are off their highs, but that's largely due to seasonal maintenance. The weather has generally been a bit bearish but warmer temperatures are blanketing the West in upcoming forecasts. Crude topped the $100 mark again as tensions continue in the Middle East.