Direct Energy Business
Market Data For Your Home Contact Us
Market Updates

Daily Market Update April 13, 2017

Early Morning Update

The May17 natural gas contract is trading down $0.02 at $3.17.  The May17 crude contract is up $0.09 at $53.20.

    

Summary

Between Feb. 21 and Apr. 6, natural gas prices had uncharacteristically risen almost 30%.  This was unusual for this time of year, as spring is generally a time of low natural gas demand, and the size of the price increase suggested that the market was undersupplied, and stagnant production lent fuel to the fire.  However, the quick ascension to high prices for this time of year convinced traders that a sell-off was in order, and that’s what occurred over the past week, as prices tumbled 18 cents.  The prompts month’s downslide paused yesterday, as the NYMEX futures contract for May delivery settled at $3.187/MMBtu, up 3.7 cents day-over-day.  The market also appears to be in wait-and-see mode, as traders and analysts anticipate the U.S. Energy Information Administration’s weekly storage report for the first week of April.  Estimates for the second injection of the storage rebuilding season range from 4 to 14 Bcf, with a consensus at 8 Bcf.  Last year for the same week saw a 1 Bcf withdrawal, while the five-year average is a 12 Bcf build.  According to the National Oceanic and Atmospheric Administration, there were 18% fewer heating degree days than for the same week last year, and 17% fewer than normal for the week.

Market Update 041317

Market Settles 041217

3.231.229.89