August 11, 2014
- Natural gas prices on the NYMEX gradually rose last week. After a brief drop on Thursday, the NYMEX recovered on Friday finishing the week with a gain of over 16 cents on the prompt month.
- Thursday’s injection report brought news of an 82 BCF injection into storage. This fell short of expectations and was smaller than last year’s injection of 90 BCF, but was significantly above the 5-year average of 49 BCF.
- Power prices also rose last week. While New York City had only a minor increase of 0.4% on the 12 month average, the other markets tracked in this commentary all rose between 2-3%.
- Although the NYMEX started to climb last week, conditions for coal-to-gas switching still remain more economical than they were earlier in the summer. Forecasts like NOAA’s outlook below will be important demand indicators as the summer starts to wind down.