After a bearish market the past month, natural gas finally reverted to a bullish state. After weeks of falling below the $3.70/MMBtu threshold, Monday provided a breakthrough for the gas market. Prices shot through the barrier and settled at $3.74/MMBtu for a weekly high. However this weekly high didn’t last long. Prices fell to around the $3.69/MMBtu on Thursday, eliminating any progress in which the market had gained this past week. Storage received an injection of 41 Bcf, much the below the anticipated amount of 58 Bcf. The East as usual received the largest of the injection at 25 Bcf. Storage is still 399 Bcf shy of last years mark, but still remains within the 5 year historical range.
Crude oil remains bullish despite seeing the largest 2 day loss this summer. Prices began falling on Tuesday, and have continued to decline. However despite this drop, production continues to grow. This is one of the reasons the market was able to stay above the $105/barrel. According to an article on Bloomberg.com, Phil Flynn states “Yesterday’s report showed that U.S. oil production was at a 22-year high last week. The durable goods number was good but it wasn’t enough to move the market into positive territory.” Flynn, a market expert, believes the key reason the market has held up so well is because of oil production being so high. Many experts believe before the weekend that the market will rebound and continue it’s bullish outlook. Price for oil on Thursday was listed at $105.02/barrel. Look for oil to stay above the $100/barrel range.
ERCOT: Prices range between .056 – .088 cents
MISO: Prices are showing between .048 – .079 cents
NYISO: Prices range between .051 – .081 cents
PJM: Prices were seen between .057 – .094 cents
The South will not receive any favors this time via the weather, with warmer than normal temperatures expected. The West will also experience temperatures well above their averages. The Midwest and North should see cooler temperatures than usual.