- The NYMEX natural gas market spent the majority of last week in a downward trend. Thursday brought the biggest dip of the week when the prompt month fell over 9 cents. By the end of the week, the 12 month average had fallen below $2.80 while the prompt month was attempting to drop below $2.50. As of noon on Monday, April 13th the prompt month has successfully dipped into the upper $2.40 range.
- Last week the winter 2015-2016 strip fell below $3.00 for the first time. The strip settled on Friday at $2.991, a drop of almost 4% on the week.
- The EIA announced a 15 BCF injection in last week’s natural gas storage report, a number that came on the upper end of expectations. It is impressive to see what a difference a year can make. At the start of last year’s injection season we were faced with less than 1 TCF in storage with a 3 TCF deficit to make up over the summer. This year we are just 173 BCF below the EIA 5 year average with analysts predicting over 4 TCF in storage by the start of the winter.
- This week’s forecast is less extreme than some have been in recent weeks. Some cool weather in the middle of the country is flanked by above average temperatures on both coastlines. It will be important to keep an eye on these forecasts as summer approaches.
- Power continued to mirror natural gas last week with all markets experiencing a dip in pricing. The leader this week was New York City with a drop of over 4%.