Natural Gas Prices Amid Tensions and Storage Levels

Tuesday, June 2nd saw the front-month NYMEX Natural Gas contract open at $3.126, $0.053 below Monday’s closing price of $3.179. Reaching an intraday low of $3.099 at 9:25AM and an intraday high of $3.177 at 10:20AM, the contract traded within a tight band near $3.155 into the afternoon. Weighing ongoing tensions with Iran and the Strait of Hormuz against healthy storage levels, July closed lower on Tuesday at $3.167.

The EIA Natural Gas Storage Report is due out Thursday at 10:30AM. The report is expected to show a 98 BCF injection to storage for the week ended May 29. This compares to a 122 BCF injection this time last year and a five-year average injection amount of 101 BCF.

As of 7:35AM this morning in Globex WTI Crude was up $1.970; Natural Gas was up $0.050; Heating Oil was up $0.136; and Gasoline was up $0.028.

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