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Weekly Energy Market Update May 6, 2013

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The following is a summary of last week’s market activity and the market outlook:

  • Natural gas prices fell significantly this week, amidst significant volatility. NYMEX futures rallied on Monday, but then fell by 20 cents on Thursday — the biggest decline in almost two years. The drop was caused by a very bearish natural gas storage report and forecasts for moderate weather across much of the U.S.
  • The EIA reported a storage injection of 43 Bcf for the week ending April 26. Current domestic storage inventories are now at 1,777 Bcf, which is 795 Bcf(30.9%) below 2012 and 118 Bcf (6.2%) below the 5-year average for this date.
  • According to Baker Hughes, U.S. natural gas rig counts fell by 12 rigs last week to 354, which is 286 rigs (41.2%) below a year ago. Horizontal rigs increased by eight and are now 49 rigs (4.2%) below a year ago.

Posted: May 07, 2013