View Archived Market Commentary:
- The NYMEX has been on a roller coaster the last couple of weeks. After a week of significant gains, the prompt month shed 43.5 cents by the end of trading Thursday. However, on Friday the bullishness picked back up and continues today. At the time of writing the prompt month is up an additional 16 cents.
- This week’s forecast may look less intimidating than last week’s, but it is important to remember that we are out of the shoulder months between summer and winter and any cold in the forecast can mean an increase in demand.
- Last week’s storage report announced what analysts believe to be the last injection of the season. An injection of 40 BCF takes inventories over the 3.6 TCF mark as we gear up for winter.
- Power prices seem to be following natural gas as all markets shed around 5% last week. Last winter’s volatility in electricity prices was a reminder that power prices should not be overlooked in winter months.
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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