Wednesday, July 30th saw the front-month NYMEX Natural Gas contract open at $3.053, $0.089 below Tuesday’s closing price of $3.142. Picking up where the August contract left off, hefty storage levels and moderating weather forecasts left bullish traders lacking support. Recording the intraday high of $3.066 by 9:05AM, prices fell to the intraday low of $3.016 ahead of midday. Trading near the $3.050 level into the afternoon, September closed lower in its first session as the prompt month at $3.045.
The EIA Natural Gas Storage Report is due out Thursday at 10:30AM. The report is expected to show a 34 BCF injection to storage for the week ended July 25. This compares to an 18 BCF injection this time last year and a five-year average injection amount of 24 BCF.
As of 8:10AM this morning in Globex, WTI Crude was down $0.460; Natural Gas was down $0.032; Heating Oil was up $0.003; and Gasoline was down $0.013.
New York basis values were lower for the current summer months and unchanged for the following winter season, whereas New England basis values were lower for the current summer months and higher for the following winter season. Additionally, cash prices were lower in New York and New England.
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
