Natural Gas Futures Market Update

On Friday, July 24, 2020, the natural gas futures market closed at $1.808/MMBtu.  This is the highest natural gas futures closing price since July 8, 2020.  The reason for the increase in natural gas futures pricing is the natural gas-targeted rig count falling to the lowest count since 1987.  The reason why the natural gas-targeted rig count is dropping is due to the natural gas market currently oversupplied.  There is concern that natural gas producers will hold off on their drilling plans that will drive up natural gas prices eventually leading to a natural gas supply shortage that will in turn increase pricing.  Currently, the August 2020 natural gas futures are trading at $1.746/MMBtu, which is down $0.062 cents from Friday’s close.

By |July 27th, 2020|Blog|0 Comments