Market Insights > First Look

First Look - Gas trades modestly higher ahead of today's August contract expiration | Harris backs off fracking ban

Oil is trading slightly lower, around $77, extending losses from last week (As of 8:20 AM)
- WTI is near a six-week low after concerns over global demand pressured prices lower last week
Israel weighs response after Hezbollah attack (BBG)
- A rocket attack launched from Southern Lebanon killed a dozen people in the Israeli-controlled Golan Heights, prompting Israel to determine its response
- The US and other world powers are seeking to prevent a larger-scale war in the region and are urging a more measured response
- Regarding ceasefire talks with Hamas, the Israeli Prime Minister said, “Negotiations on the main issues will continue in the coming days”
Harris backs off fracking ban (BBG)
- Vice President Kamala Harris’ campaign said she does not support a ban on fracking, reversing a previous position she took
- While a president could potentially ban fracking on federal land, they would likely be unable to unilaterally ban fracking on private land without an act of Congress.

Natural gas prices trade modestly higher ahead of today’s August contract expiration, with support from increasing LNG demand
- Prompt gas was 1.1c higher to $2.017/MMBtu (As of 7:46 AM)
- The Summer ’24 strip is up 3.7c to $2.115 and Winter ‘24/’25 strip is up 3.3c to $3.150
- Today’s European Ensemble shows cooler temps in the Northeast/Midwest, warmer in the Southeast/West, a net drop of 2.9 F, and below-normal temps expected in the 11-15 day period (Criterion)
Freeport LNG terminal set to resume full operations early August (S&P Global, Criterion)
- Freeport LNG will likely resume full operations in early August after shutting down on July 7 due to Hurricane Beryl, with Train 3 expected to run at full rate by the end of July, reported S&P Global
- The terminal was scheduled to receive 1.2 Bcf/d of feedgas on July 25, but flows on July 24 were revised down to 700 MMcf/d due to a power disruption
- US LNG feed gas nominations surged over the weekend, with Freeport LNG's recovery contributing to a 1.18 Bcf/d increase, reaching 13.38 Bcf/d, the highest since early June 2024
- Early nominations show Freeport hitting 2.17 Bcf/d on Monday