Nymex Natural Gas Futures Struggle with Strong Supply

Natural gas futures at the New York Mercantile Exchange struggled to gain traction on Tuesday as strong supply continued to meet summer demand.

The August contract fell by 10.7 cents to $2.660 per million British thermal units (MMBtu) around 11:50 a.m. ET, while the September contract shed 10.8 cents to $2.680/MMBtu.

The strong supply of natural gas is clouding the US market, making it difficult for prices to rise. This situation has been ongoing as temperatures have not been as hot as expected during the summer months, reducing the demand for air conditioning and subsequently natural gas.