Natural Gas Prices Drop Amid Low Demand

Monday, June 30^th saw the front-month NYMEX Natural Gas contract open at $3.525, $0.214 below Friday’s closing price of $3.739. Marking the intraday high of $3.552 at 9:35AM, stout storage levels and unimpressive cooling demand forecasts sent the contract lower throughout the day. Crossing midday at $3.462, prices sank to an intraday low of $3.421 at 2:00PM. August closed lower on Monday at $3.456.

The EIA Natural Gas Storage Report published last Thursday posted a 95 BCF injection to storage for the week ended June 20 – above the market estimate of a 86 BCF injection. Total working gas in storage was reported as 2,898 BCF; 6.3% below this time last year and 6.6% above the five-year average.

As of 7:30AM this morning in Globex, WTI Crude was up $0.570; Natural Gas was down $0.001; Heating Oil was up $0.015; and Gasoline was up $0.008.

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