The EIA reported a net gas storage injection of 10 BCF this morning for the week ending April 7, 2017. This week’s report was slightly below the market’s expectation which was centered around a 12 BCF injection. It is bearish against 1 BCF withdrawn in this same week last year and neutral against the five year average for this week which is an injection of 12 BCF.
May 2017 NYMEX natural gas futures are currently $0.02/MMBtu higher at $3.21/MMBtu, Although natural gas managed to rally to a two month high early in April, prices have declined in seven of the past ten trading sessions as winter winds down and the market transitions to storage injection season. Technical trading indicators and fundamentals are both indicating a market that is weak and vulnerable to further declines before summer electric generation cooling demand begins.
May 2017 NYMEX crude oil futures are currently $0.18 higher at $53.29/Bbl. Crude futures have managed to hang on the geopolitical premium introduced by uncertainty in Syria and possible fall out with Russia and Iran. Continued increases in domestic supply from surging US shale oil production are also being offset by reports indicating material increases in Chinese demand.
Natural gas inventories currently stand at 2,061 BCF which is 416 BCF less than from this same week last year and 263 BCF above the five year average.