Market Watch: Strong Supply Keeps Nymex Near 2-Month Low
Nymex gas futures remain near a two-month low due to strong supply levels, despite rising demand forecasts in the southern US. The market is currently characterized by loose fundamental balances that prevent a sustained price rally.
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Energy market fluctuations directly impact utility costs and industrial production, making these trends critical for economic forecasting.
Market Watch: Strong Supply Keeps Nymex Near 2-Month Low | Energy Intelligence
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Market Watch: Strong Supply Keeps Nymex Near 2-Month Low
August gas futures declined 5.1¢ Monday to $2.86 per million Btu. “Near-term power-sector expectations remain soft enough to limit buying, but the underlying cooling profile is beginning to improve. … The latest modeling added 17.5 billion cubic feet to cumulative demand over the next two weeks as heat becomes more concentrated across the southern US,” Gelber & Associates said. “Supply remains the primary restraint, with production holding at 110.4 Bcf/d and keeping today’s fundamental balances sufficiently loose to prevent the warmer forecast from generating a sustained rally.”
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