September 15, 2014
- Last week the NYMEX natural gas market played tug o’ war with the $4.00 price point. The Oct-14 prompt month saw $4.00 as a cap and the market would start to fall when this point was near, but Jan-15 and Feb-15 saw $4.00 as a floor and the market would start to rebound when these con-tracts approached it.
- Thursday’s injection report instigated a bearish reaction on the market when it announced that 92 BCF had been injected into storage. This injection exceeded all expectations and is more than 50% higher than the 5 year average.
- Power prices followed suit with natural gas as markets experienced gains between 1% and 2%. New York City was once again an outlier with a 2.3% gain.
- The NYMEX isn’t the only thing that has been volatile as of late. As the shoulder months between summer and winter arrive, forecasts are regularly shifting between cool and warm weather.