The NYMEX October gas futures contract is currently $3.92/MMBtu, $0.12 lower than it settled yesterday. The 12 month strip is trading at $4.27/MMBtu and next year's winter strip (Nov 11 - Mar 12) is trading at $4.25/MMBtu.

Storage

Working gas storage was 3,112 Bcf as of Friday, September 9, 2011. This indicates a net increase of 87 Bcf from the previous week.

Stocks were 140 Bcf less than last year at this time and 52 Bcf below the five-year average of 3,164 Bcf.

Weather

There are currently no hurricanes or tropical storms that pose any threat to natural gas production.

The heat that the south has experienced for the summer appears to be shifting to the West as the entire area from the coast to the Rockies is expected to have warmer than average temperatures over the next thirty days.

The extreme heat the entire country has experienced this summer is one of the major reasons why the natural gas storage is less than last year at this time.

With natural gas prices dropping to record lows, if interested in a fixed pricing option, please call our office at 716.614.1800.