Natural Gas Pricing

EIA’s storage report for the week ending July 31st showed an injection volume of 32 Bcf. The net injection was below expectations of a build between 41-45 Bcf; and tends to be one of the smallest, if not the smallest, injection of the year. The smaller injection is due to higher gas-fired electric generation demand. Natural gas accounts for about a quarter of the U.S. electricity generation.

Mid-continent daily index gas prices have been favorable over the past 30 days, averaging $2.677 per MMBtu. Analyst expect prices to remain below $2.70 per MMBtu as updated weather forecasting models indicated the hotter weather in the west, central and southern U.S. would give way to more moderate temperatures through August 20.

On August 6th the NYMEX futures contract average price for the 2015-16 winter (Nov 2015 – Mar 2016) was at $3.1012 per MMBtu. The NYMEX average price for the 2014-15 winter strip at the same time last year was at $4.121 per MMBtu.