Natural Gas Prices and Market Trends Explained

Thursday, July 2^ndsaw the front-month NYMEX Natural Gas contract open at $3.249, $0.026 below Tuesday’s closing price of $3.220. With the current heatwave already priced into the market, traders awaited the bearish-leaning storage report leading to 10:30AM as prices hovered near $3.180. Dropping to the intraday low of $3.151 following the above-average injection, the contract then posted a steady recovery, spanning into the afternoon. Recording the intraday high of $3.213 at 1:55PM, August closed lower on Thursday at $3.196.

The EIA Natural Gas Storage Report published last Thursday posted an 87 BCF injection to storage for the week ended June 26 – in line with the market estimate of 82 BCF. Working gas in storage was reported as 2,922 BCF; 0.8% below this time last year and 6.4% above the five-year average.

In Globex, as of 7:10AM this morning, WTI Crude was down $0.090; Natural Gas was down $0.013; Heating Oil was up $0.080; and Gasoline was up $0.040.

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