May 5, 2020
Monday, May 4
th saw the front-month NYMEX Natural Gas Futures Contract open at $1.965, 4% above Friday’s closing price of $1.890. Ascending to an intraday high of $2.006 by 9:15AM, prices were quick to withdraw back below the $2.00 level as resistance at that mark remains firm. Falling to an intraday low of $1.942 at 10:30AM, the market is in a balancing act as natural gas rig counts decline and at the same time, demand is low due to the Coronavirus-related economic slowdown. Despite the impending drop in production, storage levels remain nearly 20% above the five-year average. Aspiring to reach $2.00 again as the session drew on, the June contract closed higher on Monday at $1.993.
As of 7:20AM EST this morning in Globex, WTI Crude was up $2.12; Natural Gas was up 11 cents; Heating Oil was up six cents; and Gasoline was up four cents.
Natural Gas Glossary
Natural Gas Supplier
For access to Sprague’s full Natural Gas Market Watch Report including commentary not posted here, please send your request to
natgas@spragueenergy.com or call 1-855-466-2842.
This market update is provided for information purposes only and is not intended as advice on any transaction nor is it a solicitation to buy or sell commodities. Sprague makes no representations or warranties with respect to the contents of such news, including, without limitation, its accuracy and completeness, and Sprague shall not be responsible for the consequence of reliance upon any opinions, statements, projections and analyses presented herein or for any omission or error in fact. The views expressed in this material are through the period as of the date of this report and are subject to change based on market and other conditions. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance or results and actual results or developments may differ materially from those projected. The whole or any part of this work may not be reproduced, copied, or transmitted or any of its contents disclosed to third parties without Sprague’s express written consent.