Natural Gas Prices and Market Trends Explained

Tuesday, May 5th saw the front-month NYMEX Natural Gas contract open at $2.826, $0.041 below Monday’s $2.867. Marking the intraday high of $3.854 at 9:45AM, impending comfortable temperatures sent prices lower while analysts continue to monitor the ever-fluid situation in the Middle East. Retreating to trade along $2.785 by 10:30AM, the contract recorded the intraday low of $2.772 at 11:55AM. Trading sideways into the afternoon, June closed lower on Tuesday at $2.788.

The EIA Natural Gas Storage Report is due out Thursday at 10:30AM. The report is expected to show a 71 BCF injection to storage for the week ended May 1. This compares to a 104 BCF injection this time last year and a five-year average injection amount of 77 BCF.

As of 6:00AM this morning in Globex, WTI Crude was down $8.630; Natural Gas was down $0.044; Heating Oil was down $0.269; and Gasoline was down $0.203.

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