June 6 2024 Market Update

Happy Storage Day

NYMEX July contract rallied before the release to $2.877 US/mm, which was the same level as May 24th.  This was above the highs of the previous 7 trading days. 

The EIA announced at 10:30 an injection of 94Bcf for the week ending May 31st, above the 89Bcf estimate (from Wall St Journal survey).  The July contract immediately sold off to $2.77 US/mm, which is still at the top of the June range.  At 4pm, July was trading $2.81.

Pundits are talking about how this is smaller than the 5 year average of injections for this week.  However, I would counter that we have a lot of gas in the ground.  Currently, we have 25% more gas in storage than the 5 year average of this week, but this number has been steadily decreasing.  I don’t believe that in October, we will be that much above the 5 year average.  But I am confident that we will end the summer with a robust amount of gas in storage.

The 8-14 day forecast is looking warmer than average, so cooling demand should be up.

Rest of Summer strip was trading $2.88 US/mm, up 6 cents on the day.

Winter 24-25 strip was trading $3.59, up 2.2 cents. [WFG]

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