August NYMEX Natural Gas Futures Contract Closed at $2.601 on Friday, June 28th

Friday, June 28th saw the front-month NYMEX Natural Gas Futures Contract open at $2.732, five cents above Thursday’s closing price of $2.685. Recording the intraday high as markets opened, the contract arced lower through the morning hours as steady production has taken the wind out of the bulls’ sails. Analysts are also keeping an eye on a couple of tropical storms that could impede production. Continuing its descent from $2.625 at midday, prices fell to a three-week intraday low of $2.594 ahead of 2:30PM. August closed lower on Friday at $2.601.

The EIA Natural Gas Storage Report published last Friday showed a 52 BCF injection to storage for the week ended June 21 – in line with the market estimate 55 BCF. Total working gas in storage was reported as 3,097 BCF; 11.3% above this time last year and 20.6% above the five-year average.

As of 5:50AM EST this morning in Globex, WTI Crude was up 29 cents; Natural Gas was down four cents; Heating Oil was up one cent; and Gasoline was up two cents.

                                                                                                       
For access to Sprague’s full Natural Gas Market Watch Report including commentary not posted here, please send your request to natgas@spragueenergy.com or call 1-855-466-2842.

This market update is provided for information purposes only and is not intended as advice on any transaction nor is it a solicitation to buy or sell commodities. Sprague makes no representations or warranties with respect to the contents of such news, including, without limitation, its accuracy and completeness, and Sprague shall not be responsible for the consequence of reliance upon any opinions, statements, projections and analyses presented herein or for any omission or error in fact. The views expressed in this material are through the period as of the date of this report and are subject to change based on market and other conditions. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance or results and actual results or developments may differ materially from those projected. The whole or any part of this work may not be reproduced, copied, or transmitted or any of its contents disclosed to third parties without Sprague’s express written consent.