

The new spot month June contract got off to a strong start with prices rallying through the $2 level following a rebound in exports. Additional strength stemmed from output levels falling below the 30 day average. The new spot month June contract settled 5.6%, or 10.7 cents higher, at $2.03.

Flows to Freeport began increasing on Sunday and continued to rise yesterday to about 31% of capacity, suggesting a full train was back online. With volumes recovering at Freeport, total LNG feedgas demand rebounded to its highest level in 3 weeks to about 12.9 BCF/day.
As for weather related demand, Maxar is projecting 110 TDDs over the next 2 weeks, down from 142 last year. Of these, 52 are HDDs and 58 are CDDs.
Pipeline maintenance in the Permian and Appalachian basins have helped push production levels down. Output this past week has teetered around 100 BCF/day. As of this morning, output is coming in at 99.9 BCF/day. The next 7 days are projected to average 100.2 BCF/day.

June futures are trading lower on the day but are holding above $2 this morning on continued support from lower output and stronger LNG feedgas demand. e Midwest to the East. Summerlike temps are not expected to arrive until at least the 2nd half of May.

The new front month June 24 natural gas contract rallied higher on Monday gaining .107 (5.6%) to close the day at 2.030.
Daily volume was near average at 158,855 contracts but not indicative of a break away rally.
A large open gap on the daily continuation chart between 1.600-1.900 created during expiration of the May 24 contract on Friday is a warning current strength will not hold.
Contract low support for the June contract is at 1.900, the upper end of the gap. If 1.900 support is broken, the bottom of the gap at 1.600 will become the next downside objective.
The 2.092 overnight high is near term resistance followed by the mid-December 2.235 low.
Moving Average Alignment – Neutral-Bullish
Long Term Trend Following Index – Bullish
Short Term Trend Follow Following Index - Bullish
Relative Strength Index -63.83






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