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Weekly Energy Market Update June 30, 2014

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Below is the Direct Energy Business Weekly Energy Market Update video for June 30, 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.

  • Near-term weakness continued last week, which marks the second straight week of significant losses.
  • Prices fell across all calendar strips with greater losses occurring in front of the curve.
  • The market continues to focus on storage rebuilding and where we’ll be at end of season. Continued strong injections have put downward pressure on prices.
  • Prompt month and 12-month strip prices continue to be range-bound between $4.30 and $4.80, broke through significant price point of $4.50, with the next area of support around the $4.30 level.
  • Natural gas production remains strong year over year setting an all-time high, and is projected to remain steady for next two weeks. However, shale growth is being offset by weak imports, growing exports to Mexico, and some demand growth.
  • 2014 and 2015 are still in backwardation, with contango thereafter. Forwards are below $5 through 2019.

Posted: June 30, 2014