Natural Gas Weekly Update: Balancing Supply and Demand

Monday, April 13th saw the front-month NYMEX Natural Gas contract open at $2.703, $0.055 above Friday’s closing price $2.648. Driven higher prior to the market open as negotiations with Iran proved unsuccessful, analysts redirected their attention to domestic fundamentals following an intraday high of $2.710 at 9:35AM. Trending lower for the balance of the session, prices were trading at $2.647 by midday and tallied an 18-month intraday low of $2.615 at 1:00PM. May closed lower on Monday at $2.627.

The EIA Natural Gas Storage Report published last Thursday posted a 50 BCF injection to storage for the week ended April 3 – above with the market estimate of a 44 BCF injection. Please note there was a revision of -4 BCF to the previous week’s report. Total working gas in storage was reported as 1,911 BCF; 4.9% above this time last year and 4.8% above the five-year average.

As of 6:30AM this morning in Globex, WTI Crude was down $2.300; Natural Gas was down $0.023; Heating Oil was down $0.042; and Gasoline was down $0.018.

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