Natural Gas: Understanding Recent Market Movements

Wednesday, June 18^th saw the front-month NYMEX Natural Gas contract open at $3.912, $0.061 above Tuesday’s closing price of $3.851. Recording the intraday low of $3.896 within minutes of the opening bell, the contract continued its overnight ascent to trade along $3.960 by 9:15AM as near-term forecasts remained supportive and the conflict between Iran and Israel intensified. Shrugging off the midday storage publication, prices rose to a ten-week intraday high of $3.996 at 1:55PM. July closed higher on Wednesday at $3.989.

Markets were closed Thursday (6/19) in observation of the Juneteenth holiday.

The EIA Natural Gas Storage Report published on Thursday posted a 95 BCF injection to storage for the week ended June 12 – in line with the market estimate of a 94 BCF injection. Total working gas in storage was reported as 2,802 BCF; 7.7% below this time last year and 6.1% above the five-year average.

As of 9:05AM this morning in Globex, WTI Crude was down $0.060; Natural Gas was up $0.015; Heating Oil was up $0.045; and Gasoline was up $0.007.

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