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Weekly Energy Market Update July 28, 2014

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Below is the Direct Energy Business Weekly Energy Market Update video for July 28, 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 sideways last week catching their breath from the continued downward trend.

Thursday’s natural gas storage report was lower than expected with an injection of 90 Bcf (expected 94 Bcf), but well above the historical five-year average of 46 Bcf.

No change in fundamentals - mild weather, strong production, and large storage injections have pushed prices lower.

Prompt month, 12-month strip, and Cal ‘15 continue to trade below $4.00. None have been sustained below $4.00 since early December 2013 (before the Polar Vortex).

End-of-season storage estimates continue to increase due to recent record-breaking injections.

Cal ‘16-‘21 forwards are all below $5.00.

The market continues to be focused on storage rebuilding and where we’ll be at end of season. Continued strong injections have put downward pressure on prices.

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Posted: July 28, 2014