Daily Market Update April 27, 2018

Early Morning Update

The June18 natural gas contract is down $.03 at $2.80. The Jun18 crude contract is down $0.31 at $67.88.

Summary

The market ticked higher yesterday after the EIA reported a surprisingly large withdrawal from storage.  Lingering cold temperatures kept demand high, even out-pacing the high NG production.  The ‘good’ news is that weather is moderating and demand looks set to fall.  NG production has been hovering near 78 Bcf/d and now that heating-related demand will be lower, hopefully storage will start to refill at a fast clip.
On the power side, prices in the eastern markets continue to move higher, albeit slowly.  Texas prices have stabilized a bit and California remains volatile due to infrastructure issues and the potential for heat and drought this summer.
The May NG contract expired yesterday with pricing finishing up $.035 to expire at $2.821.

Market Update 042718