- Following a couple of weeks of bullish trading, the NYMEX natu-ral gas market spent last week in a downward trend. Monday held stable with moves of less than a penny across the prompt month and 12 month average, but things picked up on Tuesday with losses of about a nickel. By the end of the week the prompt month shed almost 13 cents and the 12 month average dropped over a dime.
- Last week the winter 2015-2016 average moved in a similar way to the 12 month average, dropping just over 10 cents to reach $3.245. This downward trend is continuing today as the winter strip has dropped an additional 8 cents as of Tuesday, May 26th at noon.
- Last week’s storage report brought news of a 92 BCF injection into natural gas storage. This number was below expectations that were in the mid to high 90’s, and the market reacted with a slight spike on the day. Ultimately, however, the lackluster in-jection was not enough support for a bullish change and the market shed these gains on Friday.
- The western part of the country has caught up with the East in this week’s 6-10 day outlook as both sides of the country are now expecting warmer than normal weather. The back half of this forecast now extends into June, when above average tem-peratures can mean significant demand increases.
- Power prices strayed from their correlation to natural gas prices once again last week. Most markets were up around 1% and as high as 3% in New York City
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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