Natural Gas Production: Understanding Current Trends

Tuesday, May 12th saw the front-month NYMEX Natural Gas contract open at $2.857, $0.053 below Monday’s closing price of $2.910. Marking the intraday high of $2.873 ahead of 9:05AM, the contract trended lower through the day’s opening hour. Falling to $2.814 at 10:15AM, traders continued to assess bearish fundamentals, storage and production, against warming weather forecasts and uncertainty in the Middle East. Recording the intraday low of $2.804 at 1:05PM, June closed lower on Tuesday at $2.843.

The EIA Natural Gas Storage Report is due out Thursday at 10:30AM. The report is expected to show an 89 BCF injection to storage for the week ended May 8. This compares to a 110 BCF injection this time last year and a five-year average injection amount of 84 BCF.

As of 6:40AM this morning in Globex, WTI Crude was down $0.040; Natural Gas was down $0.013; Heating Oil was down $0.022; and Gasoline was flat.

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