Market Commentary

Market Commentary

Weekly Recap- Week Ending 8/19/2016

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

A relatively calm week on the NYMEX natural gas market was highlighted by a bullish reaction to Thursday’s storage report, which was followed by a sell off on Friday that brought the market
right back down to where it started the week. While the prompt month settled within a penny from where it started trading on Monday, the 2016-2017 winter strip moved a little more losing just under 4 cents on the week.

Last Week on the NYMEX

Natural Gas in US Storage

An injection of 22 BCF into natural gas storage came in below expectations, which were in the mid-to-upper twenties, and the market reacted accordingly. Meanwhile, analysts are predicting that storage levels are still on pace to reach full storage of 4 TCF by the end of the injection season due to early fall injections typically picking up pace.

Political Influence on Natural Gas Pricing

One topic that does not commonly find its way into these commentaries is politics, but there are some factors in the current election that could impact natural gas pricing. Some forecasters are starting to place caveats on their projections stating that market conditions could change depending on which political party takes office. Some forecasters believe that a Democratic nominee could be more likely to adopt an opposition to fracking, which could mean increased regulation and therefore bullish prices, while a Republican nominee could bring fewer regulatory changes to energy markets.

NOAA 6-10 Day Outlook

August forecasts are still playing a large roll in power pricing as the heat in the East has been slow to die down. The forecast below shows well above average temperatures in the coming week and most power markets are up despite gas being down.

Weekly Commodity Changes in Power Markets (c/kwh)

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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