Market Updates

Market Update: May 22, 2024

Following four consecutive sessions of gains, natural gas futures retreated from a four-month high due to market corrections of an overbought condition driven by short-covering, reduced production, higher LNG feedgas demand, and hot weather in Texas. Despite expectations of further reductions in the winter storage surplus, cooler 7-15 day weather forecasts have tempered the outlook.

The latest storage report from the EIA stated an increase of 70 BCF. The current inventory level now sits at 2.633 TCF, which is 19% higher than last year and 30.8% higher than the 5-year average.

According to Baker Hughes, the latest rig count increased by one to 604 total rigs. Oil rigs increased by one. One year ago, the total rig count stood at 720 rigs.

NYMEX Natural Gas Futures

Electric Pricing Forward Calendar Strips

Working gas in underground storage compared with the 5-year maximum and minimum | EIA

Temperature Outlook: May 29 - June 4, 2024 | NOAA

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