Market Commentary

Market Commentary

Weekly Recap

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

An early week climb in natural gas gave way to an end of the week sell off that saw the prompt month drop 17 cents on Thursday and Friday. Yet again the prompt month remains extremely range-bound between $2.60 and $2.90 and absolutely refuses to break south or north of that range. The 12 month strip average continues to hover right around $3.00.

LAST WEEK ON THE NYMEX

Wednesday’s settlement at $2.886 was the highest for the week and also marked the expiration price for August 2015 contract. It’s very possible that some position squaring ahead of expiration may have helped cause the rise in prices on Tuesday and Wednesday.

NATURAL GAS IN US STORAGE

The inventory report on Thursday revealed an injection of 52 BCF which was within consensus expectations. Storage levels remain ahead of all historical benchmarks and is the likely reason that the September prompt month sold off on its first two days as the prompt month.

WEEKLY COMMODITY CHANGES IN POWER MARKETS

Power markets were generally flat last week with all markets listed below moving less than 1% on its 12 month average. While both natural gas and power markets will continue to focus on end of summer weather, this week does pose a small potential twist for the energy industry as President Obama unveiled his Energy Plan on Monday. While it is believed that the markets have already factored the impacts of the plan into their pricing levels, analysts will keep a close eye on any fallout that emerges.

NOAA 6-10 Day Outlook

outlook

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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