August 4, 2014
Download PDF version of Market Commentary
- Last week was like a kiddie roller coaster for the natural gas futures market. Prices went up and down and up and down but they never went too high or too low. At the end of the ride, prices finished exactly where they started.
- Tuesday marked the expiration of the August futures contract which finished at $3.808 per MMBtu. It spent most of Tuesday trading around $3.75 before surging its last half hour of trading. Traders who sold throughout the recent decline had to buy back their short positions and with the clock ticking sellers were able to control the market and move prices higher.
- Thursday’s injection report was 88 BCF which fell short of expectations despite beating last year’s injections by 31 BCF and nearly doubling the five year average.
- Hurricane Bertha has formed in the Atlantic but is not threatening at this point. Also not threatening is the forecasted cool weather for the majority of the country.