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DAILY NATURAL GAS SETTLEMENTS
After a few days of stability, the NYMEX natural gas market continued its recent bearishness. The prompt month fell below $2.50 for the first time since April, ultimately dropping over 11 cents to settle the week at $2.451. The 12 month average spent the latter part of the week testing pricing below $2.70, but was unable to stay below that price point for very long.
LAST WEEK ON THE NYMEX
The October 2015 NYMEX natural gas contract expired on Tues-day at $2.563. This is the lowest expiration since May of this year. The first month of the winter 2015-2016 strip, November 2015, took over as the prompt month on Wednesday.
The winter 2015-2016 average dipped even further than the prompt month and 12 month average did last week. The strip fell over 13 cents, or 4.7%, to settle the week at $2.700.
NATURAL GAS IN US STORAGE
Thursday’s storage report brought news of a 98 BCF injection into natural gas storage. Despite this number being in line with expectations, the market reacted bearishly, dropping almost a dime on the prompt month over the course of the day.
NOAA 6-10 DAY OUTLOOK
Forecasts for the coming week are above average across the majority of the country with the Northwest experiencing significantly above average temperatures.
WEEKLY COMMODITY CHANGES IN POWER MARKETS
Power prices continued to fall last week as well. Most markets dipped a little over 2%. The New York City market dropped a little more than that, potentially due to the fact that forecasts are cooler than they have been in recent weeks in the Northeast.
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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