Market Updates

Daily Market Update - May 23, 2016

Daily market update

Early Morning Update

The Jun16 natural gas contract is trading up $0.04 at $2.10.  The Jul16 crude contract is down $0.81 at $47.60.

Summary

Weather continues to dominate as the key fundamental supporting natural gas prices, as evidenced on Friday.  The latest 6-10 day weather forecasts show above-average temperatures across more than half of the eastern U.S., with very warm weather projected for the Northeast and Midwest.  The expected boost in cooling demand helped push up natural gas prices on Friday, with the Jun16 NYMEX futures contract settling at $2.062/MMBtu, up 2.3 cents on the day.  Stagnant production growth is also bolstering gas prices, with total U.S. dry production averaging 70.9 Bcf/d over this past weekend.  This is down about 4% since setting an all-time high in February.  The U.S. Energy Information Administration’s weekly storage report gives a good indication of the balance between supply and demand in the natural gas market, and lately, that balance appears to be tightening, as well.  Storage rebuilding got off to a slow start this year, and inventories have only grown by 274 Bcf so far, compared to 491 Bcf seen last year and a 353 Bcf five-year average.  Diminished production and growing demand should continue to rebalance the market as we head toward summer.

Market Update 052316

Market Settles 052016

Set your ZIP code and utility

Enter a valid ZIP code
Unfortunately, we don't currently service this area. Please try another ZIP code.

Loading please wait...

Don't see your utility?

We currently only provide service to the listed utilities. For question, please contact 1-888-925-9115.

Loading...

54.242.250.208