Natural Gas Trading: Understanding Market Dynamics

Wednesday, May 13th saw the front-month NYMEX Natural Gas contract open at $2.923, $0.080 above Tuesday’s closing price of $2.843. Recording the intraday high of $2.927 within minutes of the opening bell, prices withdrew to find stable ground near $2.880 at 10:30AM. As bearish domestic fundamentals went up against geopolitical uncertainty, prices recorded the intraday low of $2.849 at 12:30PM. Trading along $2.860 into the afternoon, June closed higher on Wednesday at $2.864.

The EIA Natural Gas Storage Report is due out Thursday at 10:30AM. The report is expected to show an 87 BCF injection to storage for the week ended May 8. This compares to a 110 BCF injection this time last year and a five-year average injection amount of 84 BCF.

As of 7:35AM this morning in Globex, WTI Crude was down $0.080; Natural Gas was down $0.019; Heating Oil was down $0.035; and Gasoline was down $0.050.

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.