October NYMEX Natural Gas Futures Contract Closed at $2.042 on Thursday, September 17th

Thursday, September 17th saw the front-month NYMEX Natural Gas Futures Contract open at $2.183, eight cents below Wednesday’s closing price of $2.267.  Falling dramatically in the day’s opening hour, prices stabilized near $2.085 by 10:00AM and traded sideways into the weekly storage report’s release.  Plummeting further as the bearish report hit the wire, the contract sank to a six-week intraday low of $2.003 by 11:00AM.  Markets surged higher in early August as demand rose and active hurricanes in the Gulf of Mexico threatened production.  Without any major storms on the horizon and seasonal temperatures settling in, we’ll see if traders deem the contract to be oversold today.  The October contract closed 10% lower on Thursday at $2.042.

The EIA Natural Gas Storage Report published on Thursday showed an 89 BCF injection to storage for the week ended September 11th – above the market estimate of 79. Total working gas in storage was reported as 3,614 BCF: 17.4% above this time last year and 13.2% above the five-year average.

As of 8:40AM EST this morning in Globex, WTI Crude was down 17 cents; Natural Gas was down six cents;
Heating Oil was down slightly; and Gasoline was down slightly

Natural Gas Glossary
Natural Gas Supplier
For access to Sprague’s full Natural Gas Market Watch Report including commentary not posted here, please send your request to natgas@spragueenergy.com or call 1-855-466-2842.

This market update is provided for information purposes only and is not intended as advice on any transaction nor is it a solicitation to buy or sell commodities. Sprague makes no representations or warranties with respect to the contents of such news, including, without limitation, its accuracy and completeness, and Sprague shall not be responsible for the consequence of reliance upon any opinions, statements, projections and analyses presented herein or for any omission or error in fact. The views expressed in this material are through the period as of the date of this report and are subject to change based on market and other conditions. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance or results and actual results or developments may differ materially from those projected. The whole or any part of this work may not be reproduced, copied, or transmitted or any of its contents disclosed to third parties without Sprague’s express written consent.