Market Commentary

Weekly Recap

October 27, 2014

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  • The NYMEX has experienced substantial bearishness this past month. Sep 29th was the first day that Nov-14 traded as the prompt month and since then it has fallen an impressive 53.1 cents (or 12.8%). The 12 month average has fallen 41.3 cents (or 10.2%) in this same time frame.
  • An injection of 94 BCF into storage came up a little shy of expectations and the market initially reacted bullishly, but this quickly reversed and the day closed down a few pennies on both the prompt month and 12 month average.
  • Forecasts continue to predict a warm November. The fact that winter seems to be waiting its turn has allowed traders to grow more confident in natural gas inventories.
  • While the NYMEX continues to fall, electricity prices have been much flatter. Most of the PJM markets tracked in the table below have shed less than a penny. The PA/MD mar-ket was the exception, dropping almost 3 cents. New York once again did its own thing shedding over 11 cents.