Natural Gas: Understanding Current Market Dynamics

Wednesday, April 2^nd saw the front-month NYMEX Natural Gas contract opened at $4.011, $0.060 cents above Tuesday’s closing price of $3.951. Continuing the overnight rally to peak at an intraday high of $4.085 at 11:25AM, markets were supported by a decline in production and uncertainty surrounding impending tariffs. Straddling the $4.050 level through the afternoon, May closed higher on Wednesday at $4.055.

The EIA Natural Gas Storage Report is due out Thursday at 10:30AM. The report is expected to show a 23 BCF injection to storage for the week ended March 28. This compares to a 37 BCF withdrawal this time last year and a five-year average withdrawal amount of 13 BCF.

As of 6:25AM this morning in Globex, WTI Crude was down $3.320; Natural Gas was up $0.012; Heating Oil was down $0.116; and Gasoline was down $0.132.

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

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