0957 ET – U.S. natural gas futures edged higher Tuesday, extending a pattern of rangebound trade that has persisted through much of June. The Nymex front-month contract rose 0.5% to $3.162 per million British thermal units, staying within the narrow band that has contained prices for weeks.
Spot prices at the benchmark Henry Hub in Louisiana have averaged $3.11/mmBtu so far this month, providing a floor for the futures contract near the low end of its recent trading range, said Eli Rubin, a principal at EBW Analytics, in a note.
“Challenges to the bullish narrative” include recovering production after periods of planned maintenance and the end of pipeline work that has made more supply available at Henry Hub, Rubin said. On the demand side, the analyst pointed to higher temperatures expected in July and an anticipated increase in LNG exports as factors that could lend support.
Natural gas markets have been caught between rising output and weather-driven swings in demand since the start of June. Earlier in the month, futures declined as weather forecasts shed summer heat, and then rebounded on hotter outlooks. The market has largely shrugged off broader energy volatility tied to geopolitical events in the Middle East, with traders focused on domestic supply-demand fundamentals.
The Dow Jones Industrial Average, a widely watched stock-market barometer, stood at 51,666.84 on Tuesday, according to FRED data available at market close.