Daily Market Update May 17, 2022
Early Morning Update
The Jun ‘22 natural gas contract is trading up $0.32 at $8.28. The Jun ‘22 crude oil contract is up $0.23 at $114.43.
Summary
latility returned yesterday after a brief respite, with the prompt month closing the day higher by $0.293 and trading within a $0.52 range for the session. Despite the run-up on the gas side, power markets did not react as strongly as power seems to have stabilized a bit recently. That is great news considering the huge price swings we had been seeing throughout any given day. The market is still concerned about this upcoming summer as coal inventories continue to remain low and coal/gas prices are so high. The forecast for this summer are in pretty good agreement that temps will be high, which if true, would lead to higher demand and higher index pricingWhat would help the markets move lower is a mild summer and an increase in NG production, something we haven’t seen this year.
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