Market Updates

Daily Market Update - May 27, 2016

Daily market update

Early Morning Update

The Jul16 natural gas contract is trading down $.01 to $2.14.  The Jul16 crude contract is down $0.53 at $48.95.

Summary

The Jun16 natural gas futures contract rolled off the board yesterday, but not before losing another 2.9 cents, settling at $1.963/MMBtu.  July is now the prompt month, and it, too, lost value yesterday, closing at $2.151/MMBtu, down 3.0 cents.  This comes after the U.S. Energy Information Administration released their weekly storage data yesterday morning, showing that natural gas inventories rose more than expected in the week to May 20.  The market was estimating a 65-67 Bcf build, but the EIA reported a 71 Bcf injection, still much smaller than the 106 Bcf seen last year for the same week, as well as the 97 Bcf five-year average.  Gas prices dropped $0.03 on the news, but the mismatch against historical norms prevented sharper losses.  Total gas in storage now totals 2,825, trimming the surplus to last year to 756 Bcf (36.5%), while the surplus to the five-year average now stands at 769 Bcf (37.4%).  Milder weather in the coming weeks should help storage grow at a faster pace, but even this may be tempered by declining production.  U.S. dry production hit a low for the year on Tuesday at 70.3 Bcf/d, down 3.5 Bcf/d from the all-time high reached in February.  Bentek projects production to be at 70.6 Bcf/d today.

Market Update 052716

Market Settles 052616

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