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Weekly Energy Market Update July 14, 2014

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Below is the Direct Energy Business Weekly Energy Market Update video for July 14, 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:

• Market declines accelerated last week as NYMEX near-term futures fell to lowest levels since January.

• Lack of summer heat, strong production and large storage injections are pushing prices lower.

• Market continues to be focused on storage rebuilding and where we’ll be at end of season.

• The EIA reported a weekly storage injection of 93 Bcf, which was near expectations and ended record streak of 8 consecutive injections of 100 or more Bcf.

• This injection was very large seasonally and current weather forecasts support ongoing large injections.

• Although the year-over-year deficit is expected to remain in place, strong injection have improved the outlook for storage inventories going into the winter.

• Regional winter natural gas basis has also declined, although there are still significant premiums due to the polar vortex that are not expected to be easily erased. Winter power prices continue to be driven by regional gas basis.

• Long-term prices remain less volatile and are driven both both shale gas and growing demand to access cheap supplies.

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Posted: July 14, 2014