Following a couple of weeks of bullish trading, the NYMEX natu-ral gas market spent last week in a downward trend. Monday held stable with moves of less than a penny across the prompt month and 12 month average, but things picked up on Tuesday with losses of about a nickel. By the end of the week the prompt month shed almost 13 cents and the 12 month average dropped over a dime.
Last week the winter 2015-2016 average moved in a similar way to the 12 month average, dropping just over 10 cents to reach $3.245. This downward trend is continuing today as the winter strip has dropped an additional 8 cents as of Tuesday, May 26th at noon.
Last week’s storage report brought news of a 92 BCF injection into natural gas storage. This number was below expectations that were in the mid to high 90’s, and the market reacted with a slight spike on the day. Ultimately, however, the lackluster in-jection was not enough support for a bullish change and the market shed these gains on Friday.
The western part of the country has caught up with the East in this week’s 6-10 day outlook as both sides of the country are now expecting warmer than normal weather. The back half of this forecast now extends into June, when above average tem-peratures can mean significant demand increases.
Power prices strayed from their correlation to natural gas prices once again last week. Most markets were up around 1% and as high as 3% in New York City