SHORT-TERM ENERGY OUTLOOK – Natural Gas

Onyx Power and Gas Consulting continues a weekly series providing the Short Term Energy Outlook as of May 9, 2017.  This series of news articles should provide a complete insight on the current conditions of the energy…enjoy, check out archives and come back each week for additional information on how all sorts of energy sources impact our daily lives.

Natural Gas

Prices: The front-month natural gas futures contract for delivery at Henry Hub settled at $3.19 per million British thermal units (MMBtu) on May 4, an increase of 6 cents/MMBtu from April 3 (Figure 7). On April 27, the front-month futures contract moved from the May delivery contract to the June delivery contract, which was priced higher to account for increased summer demand for natural gas power generation. The natural gas spot price averaged $3.10/MMBtu in April, up 22 cents/MMBtu from March.

Figure 7: Cooling Degree Days

For the four weeks ending April 28, natural gas storage injections averaged 51 billion cubic feet (Bcf) per week, almost 10 Bcf per week more than the five-year average build for those weeks. With these storage injections, stocks increased well above the five-year average level for April, although they remain below last year’s level. With natural gas production returning to growth in recent months after declining in 2016, higher natural gas exports have helped moderate inventory builds this year. At the end of 2016, the 12-month moving average of consumption plus exports rose above production plus imports and remained higher through April (Figure 8). EIA expects this trend to continue through the rest of 2017, putting modest upward pressure on prices.

Figure 8: Brent and WTI Net Money Manager Positions

The professional consultants at Onyx Power & Gas Consulting are always ahead of the current issues that may affect energy consumption and pricing. Now is the time to partner with an Onyx professional consultant to discuss energy management and secure energy prices based on today’s stable pricing.  Volatility in the energy markets makes it too precarious to take chances.  Partner with Onyx Power & Gas in Making Energy Make a Difference!

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