The NYMEX September gas futures contract is currently trading at $4.09/MMBtu., $0.02 lower than yesterday's settlement. The 12 month strip is trading at $4.43/MMBtu (Down $0.02) and next year's winter strip (Nov 11 - Mar 12) is trading at $4.47/MMBtu (Down $0.03).

Storage

            As of Friday August 5, working natural gas storage levels were 2,783 Bcf. This indicates that the previous week saw a net-injection of 25 Bcf.

            Storage levels were 197 Bcf less than they were last year at this time, and 80 Bcf below the 5-year average of 2,863 Bcf.

            The low inventory build is most likely attributable to the extremely high temperatures seen throughout the country, causing an increase in demand for power generation.

Weather

            There are numerous tropical storms forming in the Atlantic and Pacific, but none of them are currently expected to become hurricanes, or affect production in the Gulf of Mexico.

Most of the Southern United States has been experiencing record breaking temperatures over the past couple weeks, and are expected to continue, especially in Texas and the Southern Plains.

  If interested in fixed prices or a free energy savings analysis, please call our office and we can customize pricing based on your usage forecast.