Wednesday, June 26, 2019 at 4:44PM
The July 2019 natural gas contract is no more, having rolled off the board today with a final price of $2.291, marking the lowest monthly settlement in just over three years, since the sub-$2.00 settlement of the June contract in 2016. Very weak supply / demand balances have been the main culprit, but recent weather patterns have done absolutely nothing to help put a halt to the price declines, as almost every single day in the month of June so far has seen below normal demand levels. In map form, you can see the dominance of "blue" colors, or, cooler than normal, which of course means less natural gas demand. We are, in fact, looking at one of the coolest (lowest demand) June months that we've seen in several years. This has been a definite contributing factor toward allowing us to see six 100+ weekly builds, per EIA reports. The tide is turning, however, as we are finally about to string together several above normal demand days over the next week or two. Hotter than normal temperatures will be focused across key areas of the Midwest to East in the near term. As we showed yesterday, the hotter shift has already pushed prices up from the lows late last week. Will the pattern shift hold and continue to push prices upward from here? Sign up for a 10-day free trial here and take a look at what our latest research is indicating.