Natural Gas Market Weekly Update and Analysis

Monday, July 28^th saw the front-month NYMEX Natural Gas contract open at $3.101, $0.009 below Friday’s closing price of $3.110. Reaching the intraday high of $3.132 by 9:15AM, the contract proceeded to cascade lower throughout the session as production remains steady and cooling demand is forecasted to decline. Crossing midday at $3.038, prices fell to a three-month intraday low of $2.984 ahead of 2:30PM. August closed lower on Monday at $2.988.

The EIA Natural Gas Storage Report published last Thursday posted a 23 BCF injection to storage for the week ended July 18 – below the market estimate of a 31 BCF injection. Total working gas in storage was reported as 3,075 BCF; 4.7% below this time last year and 5.9% above the five-year average.

As of 8:10AM this morning in Globex, WTI Crude was up $0.170; Natural Gas was up $0.068; Heating Oil was down $0.009; and Gasoline was up $0.012.

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