Natural Gas Analysis: Understanding Current Fluctuations

Monday, April 27th saw the front-month NYMEX Natural Gas contract open at $2.593, $0.070 above Friday’s $2.523. Picking up momentum ahead of today’s settlement, prices rose to tally the intraday high of $2.630 at 11:20AM. Trending lower into the afternoon amid low trading volumes, the contract tallied an intraday low of $2.542 ahead of 2:30PM. May closed higher on Monday at $2.550.

The more actively traded June contract closed $0.046 higher at $2.729.

The EIA Natural Gas Storage Report published last Thursday posted a 103 BCF injection to storage for the week ended April 17 – above with the market estimate of 93 BCF. Please note the revision of -10 BCF for working gas stocks from the previous week. Total working gas in storage was reported as 2,063 BCF; 7.4% above this time last year and 7.1% above the five-year average.

As of 6:35AM this morning in Globex, WTI Crude was up $3.360; Natural Gas was down $0.041; Heating Oil was down $0.005; and Gasoline was up $0.030.

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