May 24 2024 Market Update

Memorial Day in USA

Today was a very light volume day on NYMEX because of Memorial Day.  Basically, the bench warmers were monitoring the market because all the starters had the day off and were opening the cottage & cooking hot dogs.

So, not surprising that the market retraced a bit of Friday’s big down move. 

July is the front month because the June contract will expire this Wednesday. When looking at this chart, you will notice that volumes are climbing over the year.  This is normal for each individual contract.  As July gets closer and closer to the front month, there is more trading. Compare that the Prompt Month chart below in which is all the front months pieced together.  Notice how volume is more balanced every month. Charts from TradingView

The 8-14 day weather forecast is for warmer seasonal temperatures, but that big red area is over Idaho.  Compare that to the northeast (Boston, Providence, New York City, Baltimore, Washington DC) which is expected to have normal temperatures.  A lot more people live in the northeast as compared to Idaho.  Include California and the map looks rather balanced. Therefore, I would not expect cooling demand to be as excessive as that image might suggest.  Image from NOAA [WFG]

Scroll to Top