August natural gas futures on the New York Mercantile Exchange declined 5.1 cents Monday to settle at $2.86 per million British thermal units, according to market data. The price remains near a two-month low, weighed down by strong supply and tepid near-term demand from the power sector.
“Near-term power-sector expectations remain soft enough to limit buying, but the underlying cooling profile is beginning to improve,” said a market analyst. The latest weather models added 17.5 billion cubic feet of demand, though the overall supply picture continues to cap gains.
Storage levels are above the five-year average, and production remains robust, keeping the market well-supplied. Traders are watching for any shift in weather patterns that could boost cooling demand and tighten the balance.
