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Daily Market Update May 8, 2018

Early Morning Update

The Jun18 natural gas contract is trading up $0.02 at $2.76. The Jun18 crude contract is down $0.68 at $70.05.

 

Summary

Near term gas futures rose on Monday, as weather forecasts show additional upside in May, and power burns show gains year-over-year. The June 2018 contract gained three cents to $2.741/MMBtu, the 12-month strip rose by 1.6 cents to $2.782, and the 2019 and 2020 years stayed flat at $2.69. Warmer-than-normal forecasts dominate most of the country through this weekend, and continue for both coasts through the 20-day forecast. This departure from April weather has already resulted in a 10% month-over-month increase in power burns, and an increase of 15% over May 2017. However, on the whole, demand is down versus last year due to significantly less residential and commercial demand. On the supply side, production has taken a dip over the last few days, as unplanned maintenance on a TETCO compressor station has decreased flow for likely another week. Production is expected to average around 77.5 Bcf/d through the next two weeks.

 

Market Update 050818 

Market Settles 050718

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