Market Commentary

Weekly Recap

April 28, 2014

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  • The prompt month stayed comfortable in the 4.70 to 4.75 trading range until Friday capped off the relatively quiet week with a small dip down to 4.65
  • While weather forecasts like the NOAA outlook below may show significant cooling or heating, it is important to note that this is not nearly as impactful on demand in the spring as it is during the heart of the winter and summer months
  • This past injection of 49 BCF was slightly above the 5 year average of 47 BCF prompting a slightly bearish response on the NYMEX but the overarching need for strong injections prevented a further drop
  • The current NYMEX price being above 4.50 is likely holding off immediate coal-to-gas switching which could allow injections to pick up while the weather remains mild