Natural Gas Storage Levels and Trends Explained

Monday, June 2^nd saw the front-month NYMEX Natural Gas contract open at $3.687, $0.240 above Friday’s closing price of $3.447. Lower production and forecasted warmer temperatures led to short covering as prices rose to an intraday high of $3.731 at 9:25AM. Trading within a tight band near $3.700 for the balance of the session, the contract recorded an intraday low of $3.668 at 1:55PM. July closed higher on Monday at $3.694.

The EIA Natural Gas Storage Report published last Thursday posted a 101 BCF injection to storage for the week ended May 23 – in line with the market estimate of a 97 BCF injection. Total working gas in storage was reported as 2,476 BCF; 11.3% below this time last year and 3.9% above the five-year average.

As of 6:45AM this morning in Globex, WTI Crude was up $0.150; Natural Gas was up $0.015; Heating Oil was up $0.013; and Gasoline was up $0.003.

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