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Weekly Energy Market Update August 11, 2014

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Below is the Direct Energy Business Weekly Energy Market Update video for August 11, 2014. We embedded this video right into the blog post, so you don’t have to leave this page to view it. The written summary is still below too.

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

Natural gas futures traded up four of the past five days last week, after bouncing off a $3.75 floor the previous week. The new range seems to be $3.80 - $4.00/MMBtu. At the lower end of that range, there is an increase in coal-to-gas switching, keeping prices from going too much lower.

There is not much change in the fundamentals picture: mild end-of summer temps, continued strong production, and above-average storage injections combine to keep prices in check.

Thursday’s storage injection came in as expected and was the 16th consecutive injection to beat the 5-year average, although smaller than last year for the corresponding week.

Dry gas production tied the record (69.3 Bcf/day) set on July 30th on August 9th and 10th, and is projected to continue to grow.

Concern over end-of-season storage levels is evaporating, as some analysts are now projecting to be at 3.6 Tcf in time for next winter. Deficits to last year, as well as the five-year average, have been more than cut in half, and now stand at 18% and 20%, respectively.

For more insights, please view our Weekly Energy Market Update or other helpful resources:

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Posted: August 11, 2014