Daily Market Update May 3, 2017
Early Morning Update
The Jun17 natural gas contract is trading flat to yesterday’s settle at $3.19. The Jun17 crude contract is up $0.24 at $47.90.Summary
The June 2017 NYMEX natural gas contract lost another two cents yesterday to settle at $3.195/MMBtu, as traders consider the below-average temperatures forecasted for much of the eastern U.S in the near-term. Below-average temperatures could cause late season heating demand in the North, but delay cooling demand in the South, and traders are struggling to find equilibrium in the market. The near-term forecasts for below-average temperatures in the East and above-average temperatures in the Northwest are a reversal from April 2017 weather patterns, which was the warmest on record dating back to 1950, in terms of gas-weighted heating degree days (264), and accounted for a 20.7% decrease in heating-related natural gas demand year-over-year. As for supplies, U.S. dry natural gas production remains stagnant, averaging almost 71 Bcf/d over the last 7 days, which is 1.8 Bcf/d lower than for the same period last year.
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