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DAILY NATURAL GAS SETTLEMENTS
The prior week’s bearishness on the NYMEX natural gas market slowed down with the market staying relatively stable throughout the week. The Oct-2015 prompt month contract tried to breakthrough $2.60, but couldn’t find support and lost about 4 cents on the week to settle at $2.564. The 12 month average was even more stable than the prompt month with the strip circling the $2.80 price point for the majority of the week.
LAST WEEK ON THE NYMEX
The winter 2015-2016 strip dropped less than 1% last week to settle at $2.834. The Nov-2015 contract, which is the first contract in this strip, will trade as the prompt month for the first time this week after the Oct-15 prompt month contract expires on Monday.
NATURAL GAS IN THE US STORAGE
Natural gas inventories continued to separate from historical averages with a 106 BCF injection being announced in Thursday’s storage report. The injection came in around the upper end of expectations and was 23 BCF above the EIA average. If history is any indicator, there should be around 7 more injections left in the season.
NOAA 6-10 DAY OUTLOOK
Things have cooled off a bit in the NOAA 6-10 day forecast. While outlying areas of the country still have some lingering heat, the central part of the country is expecting some normal to below normal weather.
WEEKLY COMMODITY CHANGES IN POWER MARKETS
Power prices came off a bit last week with most markets dipping between 1-2%. The New York City market dropped over 3%, potentially due to forecasts shifting from significantly above average temperatures to just a bit warmer than normal.
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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