View Archived Market Commentary:
- Things were fairly quiet on the NYMEX natural gas market last week. The biggest move came on Monday when the market shed almost 10 cents on the prompt month and a little over 8 cents on the 12 month average. The market tried to reverse these losses over the next few days but ultimately failed to do so. The week finished right around where Monday left off with the prompt month shedding just under 4% on the week and the 12 month strip shedding almost 3%.
- The winter 2015-2016 strip continued its attempt to get back under $3.00 last week. It settled at $3.028, a dip of 5.4 cents from the week prior. As of Monday at 2:00 PM ET the strip has fallen below the $3.00 price point.
- The storage report continued its pattern of coming in above expectations with an injection of 90 BCF being announced on Thursday. If this pattern continues we are set to eclipse the EIA 5 year average within a matter of weeks.
- After a week of unseasonably chilly weather here in the Mid-west, things are looking to heat up. The vast majority of the country is expecting warmer than normal weather in the com-ing week and as April comes to a close these types of forecasts can start to bring about noticeable increases in demand. With gas prices where they currently are, expect coal-to-gas switching to be a frequently discussed topic if summer heats up.
- Power prices were also fairly quiet last week. However, It will be important to keep an eye on the impact forecasts like the one below will have on power prices heading into the summer.
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 EMAIL UPDATES
Enter your email address to receive the weekly market summary.