The EIA reported a net gas storage injection of 53 BCF this morning for the week ending April 14, 2017. The report was below market expectations which were centered around a 60 BCF injection. Its bearish against the one year average for the same time last year and also against the five-year average which was an injection of 35 BCF.
The May 2017 NYMEX natural gas contract is currently $.03/MMBtu lower, trading at $3.15/ MMBtu. With little fundamental support for increased storage injections in the coming weeks you should see further pressure for gas futures to weaken.
May 2017 NYMEX crude oil futures are $.02 higher and is sitting at $50.46/BBl after shedding $2 on Wednesday after reports came out about a large increase in gasoline stocks. Oil has been trading in a range between $50 and $55/BBl over the past several months which can be seen in the 60-day trading range which is the tightest seen in the past 14 years. We see oil sitting in a comfortable spot for the moment and believe we will continue to see stable pricing and low volatility.
Natural gas inventories are still sitting 282 BCF above the five-year average, at 2,115 BCF. Keep in mind that’s 368 BCF less than this time last year.