The August 2021 NYMEX natural gas contract settled at $4.044/MMBtu. This has been the highest NYMEX natural gas contract settlement price since December 2018, which was $4.715/MMBtu.
Currently, the 2021 average is $3.030/MMBtu, which is higher than 2019 and 2020 12 month average NYMEX natural gas settlement prices of $2.628/MMBtu and $2.077/MMBtu. Also, we still have September 2021 through December 2021 settlement prices that need to be considered to determine the final 2021 12 month average NYMEX natural gas settlement price.
Below is a snapshot to show you the upward trend in current NYMEX natural gas futures as of the close of yesterday, Wednesday, July 28, 2021’s trading session:
- September 2021 NYMEX natural gas futures = $3.967/MMBtu
- October 2021 NYMEX natural gas futures = $3.969/MMBtu
- November 2021 NYMEX natural gas futures = $4.030/MMBtu
- December 2021 NYMEX natural gas futures = $4.130/MMBtu
- January 2022 NYMEX natural gas futures = $4.190/MMBtu
- February 2022 NYMEX natural gas futures = $4.106/MMBtu
- March 2022 NYMEX natural gas futures = $3.841/MMBtu
As we have discussed in the past, one of the main rises in natural gas prices is weather. Yesterday’s rally was attributed to expected strong / possibly very strong natural gas demand due to warmer than expected weather for the remainder of this summer. The continued shift toward eliminating coal generation electric plants does not help when additional generation is needed.
The EIA (U.S. Energy Information Administration) weekly update stated that there is a drop in U.S. natural gas production in oil wells in places like the Texas’s Permian Basin. This has also impacted pricing.
Remember, that electricity prices follow natural gas prices. Therefore, we are likely to see electricity prices continue to rise for numerous reasons.
It is imperative that you have a trusted Energy Advisor that can help you navigate the volatility of the natural gas and electricity market. If you would like to look at your future natural gas or electricity supply pricing, please contact our corporate office at 888-370-8898. One of our experienced Energy Consultants will provide you with pricing from a variety of suppliers for various terms and products that would meet your company’s needs.