NYMEX Update-May 17, 2017

NYMEX-660x220

Experts still suggest a sidelines stance with regard to natural gas prices.  Despite this week’s price decline of approximately 20 cents, tomorrow’s storage report is expected to lean towards the bullish side with lower than normal injections into underground storage.  With the market continuing to see price swings in both directions end-users may wish to continue to hold out a bit longer before making any hedges that begin in the next three months.  Natural gas rig counts have nearly doubled from one year ago and the possibility exists for these production increases to help mitigate any increases for electric power generation as we start into the cooling season.  This could provide some much needed bearish momentum to the near term resulting in favorable prices for end-users needing to lock in a price that will begin anytime between this summer and fall.

 

Tracey FergusonNYMEX Update-May 17, 2017

Leave a Reply

Your email address will not be published. Required fields are marked *

5 + 18 =