A very warm afternoon here in Toronto.

Looks like Freeport LNG experienced a power outage this morning. Volumes flowing to Freeport sharply reduced today (just over 4,000 Mcf were flowing as of noon, well below the >1,400,000 Mcf which flows during normal operations), and no volume is expected to flow tomorrow. As a result, that extra feed gas is available on the market and has a bearish impact.

The Northeast will likely experience some warmth in mid-May, Ontario included. It may be enough to kick-start some cooling demand, but certainly not enough to hold back Utilities from injecting gas into storage. Near-100 Bcf injections will probably keep coming for now.

Hopefully this helps contextualize the softening of the market as of late. Today, the NYMEX got as low as 17 cents down in the June front month contract, but ultimately settled down 8 cents, closing at $3.46 US/mm.