In my Q2 Barchart energy report, I highlighted the recovery in the NYMEX natural gas futures market. While the price of nearby natural gas futures moved 26.26% higher in Q2 2023, it was still 37.47% lower than the December 2022 closing price on June 30, 2023, at the $2.798 per MMBtu level. Natural gas futures have moved lower in lethargic trading conditions in July and early August, even though U.S. cooling demand soared with temperatures over the past weeks.
While natural gas sleeps below $3 per MMBtu, it is easy to be complacent about the energy commodity that can suddenly turn highly volatile. Over the coming weeks, the summer will end, and futures markets will begin to focus on the winter and the peak heating season, a traditionally bullish and volatile period for NYMEX natural gas futures.
