The September natural gas contract settled up around half a percent above its Friday settle, though lower than where the August contract expired Friday. The entire natural gas strip seemed to find support today, something we broke down more for subscribers, but there is little doubt that a hot first half of August played a roll in keeping prices bid. 

(Click on image to enlarge)

When prices were flat early this morning we sent out our Morning Text Message Alert to clients warning that if anything risk was still skewed slightly higher on August heat expectations, which verified well with hotter afternoon model guidance and prices settling up slightly. 

(Click on image to enlarge)

Our Morning Update highlighted that forecasts did not change much over the weekend, but it was clear that GWDDs would be significantly above a year ago levels and seasonal averages through the coming two weeks.  

(Click on image to enlarge)

As we mentioned, though, it was the entire natural gas strip that found support today. 

(Click on image to enlarge)

The result is the new Month 1/Month 2 U/V (September/October) spread actually moved a touch lower on the day. 
 

(Click on image to enlarge)

This came as the Climate Prediction Center increased confidence in heat risks for the medium-term, as seen in our Afternoon Update. 

(Click on image to enlarge)

Additionally, some of the first natural gas storage data for the last week has been released, with Dominion again reporting an injection of 9 bcf (the same as last week). 

(Click on image to enlarge)