Happy Friday
A quiet day, which was a nice change from the recent volatility. The NYMEX MAY front month was down 11% for the week. May will expire on Monday and the June contract will become the front month. June looked like it wanted to rally early this morning but then settled down to unchanged on the day.
According to LSEG, average output is 106.5 bcf/day so far in April, as compared to 106.2bcf/day in March which was a record. On April 18th, the output was 108.1bcf but it has fallen since then because of maintenance. At that 108bcf/day output level, we have the potential to fill storage by the end of injection season. Of course, we still have to get through the summer heat and the demand for natural gas to produce electricity for air conditioning demand. We have a long was to go before then but the situation is looking better than 2 months ago.
Early forecasts are for an injection of +89bcf for the EIA storage report next week (for the week ending today). If that happens, storage volumes will be within 1% of the 5 year average for this week.
Have a great weekend.