August Gas Futures Fail to Rally Despite Hottest Weather of Year

摘要

The August natural gas contract limped into its final week unable to segue the hottest weather so far this summer into a meaningful advance. Even as temperatures relentlessly climbed past the century mark from Washington, D.C., to Boston — sending the Thursday cash market soaring from New York City through New England — futures barely budged until Thursday's storage report set off yet another slide. It was a surprising reaction to such a strong short-term fundamental, which had prompted more than one analyst to predict an assault on $5. But the longer range view of growing production and the knowledge that the heat will eventually abate won the day and the August contract that started the week in the mid-$4.50s ended it in the upper $4.30s. August is set to roll off the board on Wednesday turning the prompt-month position over to the September shoulder-month. Last year, September initially rallied for a few days, then began a slow slog to a $3,651 settlement.