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Daily Market Update May 24, 2017

Early Morning Update

The Jun17 natural gas contract is trading down $0.01 at $3.21.  The Jul17 crude contract is down $0.17 at $51.30.

 

Summary

After approaching its highest level since January, the June 2017 NYMEX natural gas contract posted an 11.1 cent loss yesterday to settle at $3.219/MMBtu. This puts the prompt month smack-dab in the middle of a 39 cent trading range seen over the last two months. NOAA retracted much of the above-normal temperatures originally forecasted to linger along the east coast and expanded the probability for below-average temperatures across the midcontinent in their 6-10 and 8-14 day weather outlook publications yesterday. Despite nuclear and coal power generation still offline for maintenance and warmer-than-average temperatures for the east and central U.S. last week, gas demand for power generation is down 1.0 Bcf/d compared to May 2016. Even with LNG exports, exports to Mexico, and U.S. industrial demand higher year-over-year, total U.S. gas demand is only up by 0.3 Bcf/d month-to-date compared to May 2016, proving how mild the conditions have been this month. If current outlooks are accurate, we could be looking at a bearish start to June, as well.


Market Update 052417

Market Settles 052317

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