Market Watch

The July natural gas contract fell 1.2% to close in the low $3.20s per million Btu Friday as the early summer rally continued to fizzle, reflecting near-term weather forecasts calling for cooler weather next week, with the exception of gas-dependent Texas. “Natural gas futures have come under some pressure as LNG export demand remains under 10 Bcf/d due to prolonged pipeline maintenance and the near-term temperature outlook increasingly calls for at least a temporary retreat in the intense heat next week,” a meteorologist who specializes in energy analysis told Energy Intelligence. He sees and additional pullback over the next few sessions but thinks the contract will maintain a solid $3 price floor. The prompt month traded in a $3.166-$3.258 range and ended the session down 3.8¢ while posting a weekly loss of 8.1¢, or 2.5%. The 12-month strip fell 2.8¢ to $3.176, while the 2022 calendar strip moved 1.4¢ lower to $2.984 (Futures contracts). * * * In the daily cash market, Kern River Delivered saw the most significant price move of the day, falling $1.66 to average $3.74. This compared to benchmark Henry Hub cash prices that were down 2¢ at $3.17. In the Northeast, Transco zone 6 New York went up 14¢ to average $2.64, while Boston-area Algonquin advanced 45¢ to average $2.93. In West Texas, cash prices at the Permian's Waha Hub rose 4¢ to average $3.00. Meanwhile, Rockies leader Kern/Opal fell 26¢ to $3.11, SoCal Citygate declined 79¢ to average $5.32 and Northwest Sumas lost 14¢ to average $3.14. In Canada, Alberta benchmark Aeco fell 4¢ to $2.49 (Daily spot prices). * * * In the oil market, July WTI crude rose 60¢ to close at $71.64 per barrel Friday, down 27¢ for the week.