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Daily Market Update May 6, 2021

Early Morning Update

The Jun ‘21 natural gas contract is trading up $0.01 at $2.93.  The Jun ‘21 crude oil contract is down $0.52 at $64.19.

 

Summary

On the heels of a storage report that was bearish compared to estimates, but bullish in regard to historical benchmarks, the natural gas prompt month contract barely budged. June ‘21 futures began the trading session yesterday about a penny down from the previous day, rose a few cents on the storage news, and eventually settled at $2.928/MMBtu, down one cent. Similarly, there wasn’t much movement at all throughout the entire NYMEX natural gas pricing curve. The 2022 calendar strip was flat, while Cals ‘23-’33 were all down one penny. The U.S. Energy Information Administration reported a 60 Bcf addition to storage facilities in the week to April 30, a little more than Bentek Energy’s 54 Bcf projection, but far less than the 103 Bcf build seen last year for the same week, as well as the 81 Bcf five-year average injection. Helping to curb the recent run-up in gas prices, demand is expected to be relatively flat between 88 and 90 Bcf/d over the next two weeks, and production seems to have settled in just over 90 Bcf/d. Although weather looks to be colder than normal for the next seven to ten days, a return to normal temperatures throughout most of the country should help keep demand at bay and prices stabilized. 

Market Update050721

Market Settles 050621

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