Natural Gas Prices Rise Amid Geopolitical Risks

Monday, May 11^thsaw the front-month NYMEX Natural Gas contract open at $2.834, $0.077 above Friday’s closing price of $2.757. Recording the intraday of $2.827 by 9:15AM, prices moved confidently higher throughout the session as above average temperatures moved in for much of the country. Additionally, continued geopolitical risks with Iran provided an additional underpinning. Ascending to a six-week intraday high of $2.917 at 2:00PM, June closed higher on Monday at $2.910.

The EIA Natural Gas Storage Report published last Thursday posted a 63 BCF injection to storage for the week ended May 1 – below the market estimate of 71 BCF. Working gas in storage was reported as 2,205 BCF; 3.5% above this time last year and 6.8% above the five-year average.

As of 6:20AM this morning in Globex, WTI Crude was up $3.080; Natural Gas was up $0.012; Heating Oil was up $0.116; and Gasoline was up $0.083.

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