July 7, 2014
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- It was a short week on the NYMEX natural gas market due to Friday’s holiday. The four day trading week was relatively quiet after two weeks of solid dips in the market. However, as this commentary is being written the market has already dropped another 15 cents on the 12 month average.
- Analysts were correct in their predictions of a cool holiday weekend. Temperatures were at record lows across parts of the Midwest and forecasts continue to show mild weather for the coming weekend. Traders are optimistic that this will lead to strong injections in the coming weeks.
- An injection of 100 BCF into storage kept the triple digit injection streak alive at 8 weeks straight. The storage deficit to the 5 year average is down to 790 BCF. We started the injection season at a deficit of 1 TCF.
- Power prices quieted this week as well but some markets did post moderate drops. The Chicago market fell 1.4% and New York City dropped 3.3%.