July 21, 2014
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- The NYMEX natural gas market continued its hesitancy to break below $4.10 until Thursday’s storage report put downward pressure on the market. Thursday was the first time since January that the 12 month strip settled below $4.00 and the first time this year for the prompt month.
- After a one week break we are back to triple digit injections with Thursday’s announcement of 107 BCF being injected into storage.
- Forecasts like the NOAA 6-10 day outlook below are continuing to call for cool weather in the eastern United States due to the summer edition of the Polar Vortex continuing to linger over the Great Lakes.
- While the recent stretch of strong injections and cool weather has allowed the NYMEX to fall, we need to be wary of the possibility that coal-to-gas switching could become more economical in this environment.