Natural Gas Prices and Market Trends Explained

Wednesday, May 21^st saw the front-month NYMEX Natural Gas contract open at $3.409, $0.018 below Tuesday’s closing price of $3.427. Following the previous day’s rally, having slipped into oversold territory, the contract traded largely sideways throughout the session as fundamentals remained unchanged. Marking the intraday high of $3.438 at 9:10AM and intraday low of $3.341 at 11:45AM, June closed lower on Wednesday at $3.368.

The EIA Natural Gas Storage Report is due out Thursday at 10:30AM. The report is expected to show a 118 BCF injection to storage for the week ended May 16. This compares to a 79 BCF injection this time last year and a five-year average injection amount of 87 BCF.

As o 7:30AM this morning in Globex, WTI Crude was down $1.200; Natural Gas was down $0.040; Heating Oil was down $0.048; and Gasoline was down $0.038.

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