Natural Gas Prices Surge Amid Production Cuts

Wednesday, May 7^th saw the front-month NYMEX Natural Gas contract open at $3.597, $0.134 cents above Tuesday’s closing price of $3.463. Jumping higher overnight due to reduced production reports and bullish weather forecasts for the back half of the month, prices rose to the intraday high of $3.655 within minutes of the opening bell. Tallying the intraday low of $3.564 at 10:15AM, the contract traded within a tight band near $3.610 throughout the afternoon. June closed higher on Wednesday at $3.621.

The EIA Natural Gas Storage Report is due out Thursday at 10:30AM. The report is expected to show a 97 BCF injection to storage for the week ended May 2. This compares to an 85 BCF injection this time last year and a five-year average injection amount of 79 BCF.

As of 6:30AM this morning in Globex, WTI Crude was up $0.930; Natural Gas was up $0.047; Heating Oil was up $0.019; and Gasoline was up $0.018.

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