Natural Gas Prices Decline Amid Market Analysis

Monday, June 1st saw the front-month NYMEX Natural Gas contract open at $3.215, $0.085 below Friday’s closing price of $3.290. Recording the intraday high ($3.220) within minutes of the open for the second straight session, the contract was trading lower following last week’s rally as analysts assess the latest fundamentals. Forgoing the sympathy rally as oil markets rose once again following re-escalating tensions with Iran, prices stepped gradual lower throughout the day. Marking the intraday low of $3.160 at 1:50PM, July closed lower on Monday at $3.179.

The EIA Natural Gas Storage Report published last Thursday posted a 92 BCF injection to storage for the week ended May 22 – in line with the market estimate of 94 BCF. Working gas in storage was reported as 2,483 BCF; 0.9% above this time last year and 6.2% above the five-year average.

As of 6:32AM this morning in Globex, WTI Crude was down $1.060; Natural Gas was down $0.003; Heating Oil was down $0.047; and Gasoline was down $0.024.

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