September 2, 2014
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- Prices on the NYMEX natural gas market experienced a gradual rise last week. The 12 month average increased over 10 cents and the prompt month began trading above $4.00. However, as of Tuesday (9/2) afternoon, the October 2014 prompt month is back down in the low $3.90’s.
- The prompt month Sep-14 contract expired on Wednesday at $3.957. Before expiring, the contract flirted with the $4.00 mark for a few days but failed to break through it.
- An injection of 75 BCF into storage was on the low end of expectations and traders reacted with an initial spike in prices. But focus shifted to the long term storage situations and the spike almost fully corrected with the 12 month average settling up only 1.4 cents on the day.
- Forecasts for the remainder of the summer have shifted to being slightly above average. However, it is important to note that small shifts in September and October weather has far less impact than it would in July or August.