

Today’s expiring July contract traded both sides of unchanged during Tuesday's session. Rising production levels have lent pressure while strong cooling demand has been supportive. July futures settled 5.5 cents lower at $2.756. Aug NG settled settled 3% lower at $2.86.

Weather will remain a supportive factor as we head into July. The next few days will feature some temperature variability across the North while the South will see persistent heat.
The 6-10 day forecast features below normal temps across the Upper Midwest and NE early in the period followed by a significant warm up in the Midwest and East with highs reaching back into the 90’s. The southern US remains steadily hot with highs in the upper 90’s to 100’s while the NW remains below normal.
Power burn rose to 48.2 BCF/day on Tuesday and is estimated this morning at 46.9 BCF/day. Gas fired cooling demand is expected to decline to an average of 42.9 BCF/day during the next 7 days before rising back up to an average of 45.7 BCF/day in the 11-15 day period. Stronger power burn helped push total demand up to 103.7 BCF/day yesterday but is back down this morning at 103 BCF/day.
LNG feedgas demand dipped yesterday to just 11.2 BCF/day as Corpus Christi kicked off a 2 day project while maintenance on Sabine Pass continues to constrain LNG exports this month.

The sell off continues this morning with July futures currently trading 9 cents lower.

Today’s expiring July 24 natural gas contract turned back down on Tuesday following a rally higher on Monday which stalled under 10 day moving average resistance.
With resistance holding on Monday, the July contract lost .055 on Tuesday settling the day at 2.756, closing lower 7 out of the past 9 sessions.
The near term trend remains down with daily continuation chart 40 day moving average support at 2.585 today followed by the 38% retracement of the 2024 uptrend at 2.520.
Once support is found, a rally back higher is expected. 10 day moving average and 7-month trend line resistance is at 2.830-2.850 today. A close above this resistance will turn the 3.159 high set two weeks ago into the next area of resistance.
Moving Average Alignment – Neutral-Bullish
Long Term Trend Following Index – Bullish
Short Term Trend Follow Following Index - Bearish
Relative Strength Index -49.75






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