Market Commentary

Weekly Recap

May 12, 2015

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  • The NYMEX natural gas market was relatively stable for most of last week’s trading. Up until Friday the prompt month had only moved about a nickel in either direction and the 12 month strip stayed close to $3.00. Friday brought with it a change from this pattern when the prompt month surged almost 15 cents and the 12 month average broke into the $3.10’s. Some analysts are calling this a technical move related to hurricane activity.
  • The winter 2015-2016 strip continued its upward movement last week. The strip was up just over a dime last week which means the strip has gained 24.2 cents, or 12.5%, over the past two weeks.
  • Thursday’s storage report brought news of a 76 BCF injection into storage. This number came in slightly above expectations and the market reacted with a small dip in pricing. Inventories are quickly catching up to the EIA 5-year average after some lingering winter cold created a slight deficit in storage levels.
  • NOAA’s 6-10 day outlook is currently reminiscent of what we saw for the bulk of the winter with forecasts being split down the middle of the country. Cooler weather is now prevalent in the West while the East is heating up as we start to approach the peak summer months.
  • Power prices saw the biggest uptick they have seen in a while with a few markets gaining over 3% on the week. The Chicago area gained over 2% on the week and New York City experi-enced the least movement with a gain