Market Commentary

Market Commentary

Stay up to date on the latest information and changes that may impact natural gas and electricity pricing with the Market Commentary.

Download a PDF version of this week’s Market Commentary here.

DAILY NATURAL GAS SETTLEMENTS

The NYMEX natural gas market had another relatively quiet week last week. By end of trading Friday the prompt month settled up about 1.5% on the week and the 12 month average was able to break through $2.90. One noteworthy point is that while the near term strip has been rather flat, long term trading out into calendar year 2017 has come off a few cents to establish new lows in pricing for this timeframe.

Thursday brought the expiration of the Sep-15 prompt month contract. The contract expired at $2.638, about a quarter less than last month’s expiration.

LAST WEEK ON THE NYMEX

The winter 2015-2016 average followed suit with the rest of the market. The strip gained less than half of a penny on the week, ultimately settling at $2.966.

NATURAL GAS IN US STORAGE

An injection of 69 BCF into natural gas storage exceeded expectations, which were in the 60-64 BCF range. The bearish injection added to the volatility that normally accompanies contract expiration day and the prompt month contract dropped about a nickel on the day.

NOAA 6-10 Day Outlook

Heat continues to linger throughout most of the population dense areas of the country with some well above average temperatures forecasted in the heavy consuming region of the Northeast and stretching down into Texas.

WEEKLY COMMODITY CHANGES IN POWER MARKETS

Power prices followed natural gas last week. No market moved more than 1% last week with most markets staying almost completely flat.

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.

IGS Energy provides weekly analysis and market updates on industrial and commercial natural gas news. We cover natural gas prices, futures, and national storage information, giving you the most accurate market data.

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