August Nymex gas eased in early trading as LNG export-terminal maintenance and mixed Tropical Storm Bertha risks balanced triple-digit Texas heat and its support for power demand.
U.S. natural gas futures edged lower in early trading, with the August Nymex contract quoted at $2.858/mmBtu at 0933 ET after earlier trading around $2.882/mmBtu at 0926 ET. Triple-digit "feels like" temperatures in Texas were seen supporting power-sector demand, but ongoing maintenance at LNG export terminals continued to restrain feedgas flows. The market was also assessing Tropical Storm Bertha along the Gulf coast, with analysts saying it could cut offshore output while also disrupting LNG exports and bringing cooling rain that reduces demand. Gary Cunningham of Tradition Energy said the August contract was likely to remain range-bound between $2.80 and $2.95 unless conditions change, while Earth Science Associates estimated offshore gas production losses of 4.4 Bcf to 6 Bcf and lost oil production of 1.4 million to 5.4 million barrels.