Market Commentary

Weekly Recap

September 8, 2014

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  • Trading on the NYMEX was closed Monday due to the holiday, but traders wasted no time recovering from the long weekend as Tuesday brought a 17.5 cent drop on the prompt month. The rest of the week was defined by a slow decline which saw the 12 month average shed almost 20 cents and the prompt month shed a total of 22.5 cents.
  • The storage deficit to the 5-year-average is now below 500 BCF thanks to a healthy injection of 79 BCF being announced last Thursday. As the injection season winds down, the final deficit will depend heavily on how early winter decides to show up.
  • Power prices did not dip as much as gas prices last week with most markets experiencing a drop between 1 and 2 cents. The one exception was New York City, which gained 18 cents on the week.
  • Some cooling in the eastern US indicates summer may be on pace to finish more bearish than previously thought.