BWS Blog


Natural Gas Prices Unable To Hold Yesterday's Gains Despite In-Line EIA Report

Thursday, May 09, 2019 at 5:09PM


After a strong rally yesterday, naturals gas prices fell in today's trading session, with the June contract off as much as nearly 5 cents before moving off its lows and closing down 1.5 cents on the day.

natural gas commodity weather

Today's EIA release showed that we injected 85 bcf last week, dead on with what market expectations were, although that did confirm a slight loosening of the supply / demand balance compared to last week's report.

natural gas commodity weather

When looking at the same week in prior years, the loose balances are even more evident.

natural gas commodity weather

On the weather front, our forecast today did call for slightly more demand over the next couple of weeks compared to yesterday's forecast.

natural gas commodity weather

The demand picture is a tricky mix at this time of year, however, with the gains next week coming in the form of higher HDDs in the Northeast, where cool anomalies are seen.

natural gas commodity weather

Out in week two, the demand gains come via additional CDDs, with warmth spreading into the eastern U.S, enhancing cooling demand in the Southeast.

natural gas commodity weather

Will all of this be enough to inject more life into the world of natural gas, where prompt month prices in recent weeks have been hovering near their lowest levels in the last three years? Sign up for a 10-day free trial here and see what our latest research suggests!