July 27, 2015
- The natural gas market remained range bound throughout last week and ultimately finished the week at its lowest closing price of the week, $2.776 per MMBtu. The prompt month August 2015 contract briefly traded north of $2.90 on Wednesday but even Wednesday’s settlement of $2.897 fell below the $2.90 level that has served as the top of our recent trading range.
- The biggest movement of the week last week came on Thursday following the injection report. Despite the report revealing an injection within expectations, market participants still used the report as a basis for selling. At days end, the prompt month had shed more than 8 cents on Thursday.
- Weather forecasts continue to dominate the market and current forecasts are somewhat mixed. The below NOAA 6-10 day outlook contains some below normal in the Midwest but some above normal temperatures in the Northeast, Southeast and West. At this point in the summer, there are only a handful of weeks left for truly intense heat before market participants will start shifting sights from summer heat towards forecasts for the upcoming winter.
- Power markets followed natural gas across the board in locations listed below. As is usually the case, prices for New York City exhibited the largest volatility and moved down more aggressively than the PJM markets.