NYMEX Natural Gas Futures Contract Aug23 prompt month contract +US$0.045/MMBtu at $2.73, low of $2.656, high of $2.754, traded range of $0.098. Summer 23 +$0.057 at $2.778, Winter 23 +$0.064 at $3.627.
Market Fundamentals While yesterday’s weather saw weakening in temperatures, we now return to the flip side with above average projections fueling more buying of natural gas. Asides from the basic fundamentals, an explosion on a pipeline in Strasburg, Virginia has led to Columbia Gas declaring a force majeure effective today. The pipeline is one of the cheapest gas sources to the Cove Point LNG facility, but at the moment, impacts on natural gas prices have yet to have a clear effect. Regional pricing will be affected first, and due to alternate pipeline connections, Cove Point LNG should continue to operate (i.e., No Freeport effect just yet).