- After coming off somewhat on Monday, the NYMEX natural gas market continued the bullishness it started late in the week prior. This upward movement ended with the prompt month trading above $3.00 for the first time since mid-January and the 12 month strip approaching the $3.20 price point.
- The bullishness on the NYMEX held true for the winter 2015-2016 average as well. The strip was up almost 8 cents on the week and is up over 35 cents since trading below $3.00 a little over one month ago.
- An injection of 111 BCF into storage failed to meet expectations which was part of the support the NYMEX needed to continue its upward climb last week. The deficit to the EIA 5-year average sits at just 38 BCF and we are rapidly approaching 2 TCF of natu-ral gas in storage.
- Summer heat looks to be on its way a bit earlier than usual with the East continuing its expectation of warmer than normal weather. However, the western part of the country is not yet following suit. Even with recent NYMEX bullishness, conditions are still economical for coal-to-gas switching to occur should above average power demand persist into the heart of the summer.
The comments made above regarding the NYMEX futures market are the sole opinion of the author, not necessarily the opinions of Interstate Gas Supply, its officers or its employees. Information provided in this “Market Update” is for illustration purposes only, and neither the author nor Interstate Gas Supply shall be liable for any information contained herein.
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