Daily Market Update April 21, 2017
Early Morning Update
The May17 natural gas contract is flat at $3.15. The May17 crude contract is also flat at $50.71. What are the chances?Summary
The market slid slightly yesterday, closing down $.026 to finish the day at $3.159. The EIA reported a build into storage which was slightly higher than expectations at 54 bcf. This leaves storage at 2.115 Tcf, far below last years’ level but ahead of the 5-year average. The US is still seeing lower supply, currently hovering near 70 Bcf/d, but demand is down as well. Mild weather and strong nuclear and wind generation have kept power burns in check, with demand there down nearly 3 Bcf/d vs last year. Demand has the potential to increase as weather forecasts are trending above-average and cooling demand looks set to move higher. Meanwhile, longer term gas and power prices continue to creep slightly higher. There have been no sudden increases, but it’s a been a steady move up. Cal ‘19 NYMEX has increased $.05 over the past week and Cal ‘20 is up $.07 for the same time. Concerns about lagging NG production and potential increases in demand are leading the way on the increase.
Loading please wait...