Natural Gas: Market Insights
- Injection Season Update: The first week brought another above-projected injection. While storage levels remain 20% below last year and 4.3% below the five-year average, consistent injections over the next few weeks could bring us back above the five-year average.
- WTI Crude Oil Price Drop: The price of WTI crude oil has fallen sharply to $60.73. This decline in oil prices may impact natural gas production, as much of it comes from associated gas drilling during oil production. If oil prices drop too low, drillers may reduce production, potentially tightening the gas supply.
EIA: Natural Gas Storage Report
Natural Gas: Demand Trends
- Market Turbulence: This week saw significant declines across multiple markets—oil, gas, stocks—largely driven by new tariffs imposed by the President. Natural gas prices have dropped below $4.00 to $3.76, with further downward pressure expected.
- LNG Exports: Liquefied natural gas (LNG) export facilities operate near full capacity, exporting over 16 bcf/d. While the tariff situation could impact imports, European gas storage levels remain below 40%, suggesting strong demand for U.S. exports will likely persist.
Natural Gas Production Report
Weather Outlook
Energy Market Today: What Should You Do?
Navigating these market changes requires a strategic approach:
For Smaller Accounts:
- Consider longer-term agreements as they currently offer lower rates.
- Pass through capacity charges whenever possible to minimize premiums.
For Managed Index Products:
- Focus on reducing or eliminating premiums by passing through energy and capacity costs.
- Work with a qualified energy consultant to identify hedging opportunities during market dips.
This recent market dip may present an excellent chance to lock in energy blocks at favorable rates.
NYMEX ROLLING PROMPT MONTH (chart)
The chart displays fluctuations in the price of the prompt month contract, which can be influenced by market conditions such as supply and demand, geopolitical events, and economic factors.
Natural Gas Power Burn Demand
Stay Ahead of the Market
If you have questions or need tailored advice for your energy strategy, please contact us. Our team is here to help you make informed decisions that align with your goals.
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