July 28, 2014
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- After more than a month of consistent bearishness the NYMEX natural gas market stabilized a bit last week. The 12 month average seems to have found a home in the $3.80’s while the Aug-14 prompt month fluctuated between $3.75 and $3.85.
- The storage deficit to the 5-year average fell below 700 BCF with last week’s injection of 90 BCF. With the continued cool weather across the eastern US we could see more strong injections in the coming weeks.
- Significant cooling is still the story in near term weather forecasts as seen in NOAA’s 6-10 day outlook below. The long term summer forecast remains bearish as well.
- For a more comprehensive look into the recent movement on the NYMEX please see the extended commentary on page 2.