- The NYMEX natural gas market spent the majority of last week in a downward swing. The prompt month dipped almost 20 cents to fall below $2.60 and the 12 month average landed in the upper $2.80’s after starting the week above $3.00.
- Friday marked the expiration of the April 2015 contract which expired at $2.59. This comes at more than a 30 cent discount to the March 2015 contract which expired at $2.894.
- The winter 2015-2016 strip shed 11.1 cents last week to settle at $3.091. This marks the first time that this strip has dropped below $3.10. Summer weather forecasts and near term production will be the major factors in determining how low this price can dip.
- Last week brought news of the first injection of the year. 12 BCF was injected into storage marking the earliest an injection has happened since 2012. While this most likely signifies the start of the injection season, it is possible that we could get one more small withdrawal due to last week’s brief cold snap in the East.
- While the country has spent most of the winter divided be-tween warmth in the West and cold in the East, this week fore-casts are splitting the country in a different way. The northern half of the country has winter still lingering while the southern half is starting to heat up.
- Power prices stayed relatively quiet again last week with some minor bearishness across PJM markets. New York City continued to move the opposite direction with a 1% gain.