Market Updates

Daily Market Update May 18, 2017

Early Morning Update

The Jun17 natural gas contract is trading up $0.04 at $3.23.  The Jun17 crude contract is down $0.67 at $48.40.

 

Summary

Cooler weather forecasts continue to put downward pressure on natural gas prices, as the prompt month has fallen in the last three consecutive sessions.  The Jun17 NYMEX contract dropped another 3.8 cents on Wednesday, settling at $3.192/MMBtu.  After climbing 25 cents from Tuesday through Friday last week, gas prices have already fallen 23 cents this week, almost erasing last week’s gains.  The 2019-2023 calendar strips edged up slightly yesterday, while 2018 remained relatively flat.  At a time of year when the market is usually gearing up for the onset of significantly increased cooling demand, traders were selling off positions in the likelihood that demand for natural gas will be tempered.  Despite a taste of summer this week along the East Coast, temperatures for a majority of the country are forecasted to dip below normal over the next two weeks.  Meanwhile, below-average storage injections are projected to continue for the next few weeks, as production continues to stagnate.  The estimate for the storage build for the week to May 12 is 58 Bcf, which is bullish compared to the 71 Bcf injection seen last year for the same week, as well as the 87 Bcf five-year average.


Market Update 051817

Market Settles 051717

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