

Spot month nat gas edged slightly lower Monday as rising production levels coincided with the impact of Hurricane Debby, which is expected to cause some near term demand destruction. The Sep contract settled 2.5 cents lower at $1.942.

Weather driven demand has been solid with power burn holding strong as intense heat blankets the West. More heat is in store for the West through this week before a pattern change takes place during the 6-10 day period, causing temps along the West Coast to moderate. No significant heat is forecast for the Midwest through early next week
LNG feedgas demand has recovered to more than 13 BCF/day since last week. Freeport LNG is operating at its fastest pace in over a year and with maintenance now complete, Sabine Pass has also seen stronger feedgas demand of more than 4.4 BCF/day.
Feedgas demand is being impacted by Hurricane Debby as some terminals are temporarily shut down.

Natural gas is attempting to rally this morning on short covering, returning exports and a slowdown in production. Storage estimates for the next 2 reports are also supportive.
Weather forecasts are mixed this morning with heat dominating large portions of the South and West while Debby is likely to bring cooling rains as it tracks up the East Coast.

Natural gas prices continue to slide lower with the spot September 24 contract closing down five consecutive sessions settling Monday at 1.942.
The 78% retracement of the 2024 uptrend at 1.850 remains primary support. This support was tested last week and held during expiration of the August 24 contract.
If 1.850 support is broken, the final 88% retracement at 1.680 will become the next downside objective.
10 day moving average resistance on the daily continuation chart is at 2.005 today followed by weekly high resistance at 2.149 set last week.
Moving Average Alignment – Neutral- Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Follow Following Index - Bearish
Relative Strength Index -36.60






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