The September 2021 NYMEX natural gas contract settled at $4.370/MMBtu. This has been the second highest NYMEX natural gas contract settlement price since December 2018, which was $4.715/MMBtu.
Currently, the 2021 average is $3.179/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 October 2021 through December 2021 settlement prices that need to be considered to determine the final 2021 12 month average NYMEX natural gas settlement price.
Weather continues to be a driving factor in natural gas prices. August 2021 temperatures were hotter than average for the western and northern portions of the United States, similar to the temperatures in July 2021.
Hurricane season is also shutting down rigging operations in the Gulf of Mexico. On the anniversary of Hurricane Katrina’s landfall, which was on August 29th, 2005, Hurricane Ida made landfall in Louisiana on August 29, 2021. When Hurricane Katrina shut down the natural gas production in the Gulf of Mexico, natural gas prices rose as high as $14.10/MMBtu. However, before Hurricane Ida hit Louisiana, according to the New York Times, a majority of gas companies shut down their gas rigs in the Gulf of Mexico. Due to the previous events such as Hurricane Katrina, fracking is more widely used in the United States. This has led to prices still increasing for natural gas; however, the result is very low with the increase being under $5/MMBtu.
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:
- October 2021 NYMEX natural gas futures = $4.379/MMBtu
- November 2021 NYMEX natural gas futures = $4.431/MMBtu
- December 2021 NYMEX natural gas futures = $4.519/MMBtu
- January 2021 NYMEX natural gas futures = $4.570/MMBtu
- February 2022 NYMEX natural gas futures = $4.471/MMBtu
- March 2022 NYMEX natural gas futures = $4.4134/MMBtu
The EIA (U.S Energy Information Administration) weekly update reminds us that electricity can also be affected during this time. Hurricane Ida has already impacted energy supply, energy demand, natural gas supply, natural gas exports and electricity.
It is imperative that you have a trusted Energy Advisor that can help you navigate the volatility of the natural gas and electricity market especially if your energy supply agreement is expiring in the near term.
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 energy needs.