June 23, 2014
- A gradual decline highlighted last week’s natural gas trading on the NYMEX. The prompt month July 2014 contract shed 16.5 cents on the week and the 12 month strip shed 20.8 cents.
- An injection of 113 BCF into storage continued the streak of triple digit injections. This is the sixth straight week that injections have been above 100 BCF, a pace that needs to continue to get storage levels back on track for the winter.
- Power prices regained their correlation to natural gas prices with decreases across the board. Each market listed below dropped 1.5% to 2% compared to a 3.6% NYMEX drop.
- The warmer than normal NOAA forecast below is critical to monitor throughout the summer. Sustained heat could potentially increase natural gas and power prices as a result of power generation demand for natural gas. Further, customers on electric variable rates should be wary of extreme volatility in monthly electric rates.