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Volume 229 May 30, 2008
Market Update: The June natural gas futures contract expired Wednesday at $1.1916 per therm. July is now the front month. And is trading lower compared to last week at this time. The continuing story and the cause for gas prices to be strong is the strength in oil and fuel oil prices caused by commodity buying by institutional investors comprised of corporate and government pension funds, Sovereign Wealth Funds and University Endowments. Also, natural gas production at the Independence Hub/Trail facility is still off line keeping as much as 1 Billion Cubic Ft per day from the market. The storage report this morning was an 87 Billion Cubic Ft injection; we are still slightly lower than the five year average.
The Crude oil price for July is lower this week at $126.45 per barrel. Unleaded gasoline futures are higher this week at $3.4052 and gas at the pump is over $4.09. The natural gas storage report today was an injection of 87 BCF; in the middle of the analyst’s expectations of +80 to +90 BCF.
According to the most recent 6- to 10-day forecast from the National Weather Service below normal temperatures can be expected in Michigan, Ohio, Indiana, Illinois, Wisconsin, Minnesota and Iowa. Temperatures are expected above normal in Texas, New Mexico, Colorado, Kansas, Oklahoma and the south central states. Normal temperatures are expected in the west and the east and the southeast.
Above Graph – June 2008 NYMEX gas futures.
(Click Graph to Enlarge)
The graph above shows storage levels as of 5-29-2008.
(Click Graph to Enlarge)
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Gas Storage Statistics: (BCF) Billion Cubic Feet
This Week: 1,701
Last Year: 2,022
5 Year Ave: 1,709
The weekly total of 1,701 BCF is a net increase of 87BCF from last week and in the middle of the analysts’ expectation of 80 to 90 BCF.
Comparative Fuels:
Futures Prices for June
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Price |
Compared Nat Gas |
| Natural Gas (therm) |
$1.147 |
$1.147 |
| Propane (gal) |
$1.697 |
$1.852 |
| Crude Oil (barrel) |
$126.45 |
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| Heating Oil (gal) |
$3.690 |
$2.654 |
| Unleaded Gas (gal) |
$3.405 |
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North American Natural Gas Rig Count
This Week: 1,493
Last Week: 1,471
Year-Ago This Week: 1,471
NYMEX Futures Strip Price for 1 YR-
June 2008 - June 2009: $1.1559 per therm
NYMEX Futures Price for Winter -
Nov 2008 - March 2009: $1.286 per therm
CURRENT WEATHER MAP
May 30, 2008
(Click Map to Enlarge)
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