Prices in the eastern markets slowly continue to move higher while ERCOT prices have stabilized a bit.
The day-ahead market saw some relief over the report week with cold weather starting to subside.
Natural Gas Markets
The May ‘18 NYMEX future contract expired on Thursday April 26th at $2.821. The market ticked higher after the EIA reported a surprisingly large withdrawal from storage. Milder temperatures seem to finally be arriving along the east coast after a very cold March and April. This should allow for heating-demand levels to fall a bit.
Six-Month Natural Gas Futures
Futures as of 4/25/18 versus previous week:
May $2.786 +0.047
Jun. $2.807 +0.039
Jul. $2.844 +0.030
Aug. $2.852 +0.024
Sep. $ 2.835 +0.021
Oct. $2.846 +0.018
Natural Gas Inventory
A net decrease of 18 Bcf from the previous week was reported by the EIA. Working gas in storage was 1,281 Bcf as of Friday, April 20, 2018. Estimates for the report called for a smaller draw from storage, ranging from –4 to –11. Current stocks are around 41.2% lower than levels at this time a year ago, and 29.1% below the five-year average for this time of year. Once again, this should hopefully be the last draw of the season.
NG Rig Count
The Baker Hughes exploration gas rig count increased 3 rigs from the previous week for a total of 195 rigs. The report total is 24 rigs more than in operation last year when there were 171 rigs.
The NOAA weather models are expecting some lingering cold temperatures spreading across the northern United States. Conversely, the Western half of the CONUS is calling for above normal weather.
National Weather Service Updates (NOAA)
Hurricane Watch- No Activity: Click here to view the National Hurricane Center site.
Equatorial Pacific Outlook: Click here to view La Nina and El Nino status.
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