Market Commentary

Weekly Recap

June 9, 2014

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  • The NYMEX saw a steady uptick each day throughout the week. The 12 month strip gained almost 15 cents during the week and the prompt month broke into the 4.70’s.
  • Thursday’s storage report was slightly above expectations at 119 BCF and was met with an immediate dip on the NYMEX. However, the storage deficit remains massive and that big picture outlook weighed on traders’ minds as the prompt month finished the day up 6 cents.
  • Power prices did not follow suit with NYMEX natural gas prices last week. PJM index points experienced slight dips and New York City saw just a small gain.
  • The 6-10 day outlook seen below shows most of the nation is heating up. It will be crucial to watch coal prices as we enter the heart of the summer time. If coal-to-gas switching starts to make financial sense, it will be detrimental to the injections that storage needs.