Forward markets dropped slightly over the last week, but rebounded over the weekend. Forward markets have still generally trended upwards over the last 3 months.
Temperatures were well below average over the last week. Low gas demand kept spot pricing stable.
Natural Gas Markets
Outward pricing years continue to shift upwards. There is now a sizable gap between 2023 and 2024 forward pricing years. Increases in forward pricing years being driven by increases in demand due to fuel switching and the ability to export liquid natural gas.
Futures as of 5/4/2023 versus previous week:
Natural Gas Inventory
Working gas in storage was 2,063 BCF as of Friday, April 28th, according to EIA estimates. This represents a net increase of 54 Bcf from the previous week.
The Baker Hughes exploration decreased by 4 rigs for a total of 157 this week. There are 144 additional rigs in operation than at this time one year ago.
Temperatures will be above average on both the East and West Coast, but below average across the Southern Plains
Hurricane Watch: Click here to view the National Hurricane Center site.
News : US gas production outlook flattens as low prices dampen activity, guidance- The outlook for US natural gas production growth in 2023 has cooled dramatically in recent weeks as persistently low prices begin weighing on gas-directed drilling activity and producer guidance.
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