

Spot month gas prices extended losses yesterday as weather outlooks remained unsupportive for heating and cooling needs over the next 2 weeks. LNG feedgas demand also continues to come in well below capacity. June futures settled 5.9 cents lower at $1.932. The prompt is maintaining a steep discount to prices further out on the curve.

Storage data for the week ended Apr 26 is expected to show a lower than normal build of 55 BCF. This compares to last year’s build of 62 BCF and the 5 yr avg injection of 72 BCF.
Comfortable temps this week have eliminated the need for any real heating or cooling usage, resulting in higher injection estimates for the week in progress. Refinitiv is predicting a build near 89 BCF which would be higher than historical comparisons.
Early summerlike heat is expected next week in the ERCOT region with a total of 75.9 CDDs projected which would rank 3rd hottest. Much above normal readings are also forecast for the Midwest to Mid-Atlantic early to the middle of the 6-10 day period. Cooler conditions are projected for the West.
The 30 and 60 day outlooks from Maxar are unchanged with June averaging warmer than normal from the Plains to the Midwest and South with near normal temps in the West and East. July is expected to feature widespread above normal readings across the East and near normal temps in the West. Cooling degree day total suggest June could be the 10th hottest while July could rank 12th hottest.

The spot month is trading about 4 cents higher ahead of today’s storage report.

The June 24 natural gas contract is currently trading .050 higher near 1.980 after holding above 1.900-1.910 support on Wednesday.
1.900-1.910 is the contract low for the June contract and the top of the gap on the daily continuation chart created during expiration of the May 24 contract.
If 1.900-1.910 support is broken, the bottom of the open gap at 1.620-1.630 will become the next downside objective.
Weekly high resistance set on Tuesday is at 2.092.
Moving Average Alignment – Neutral-Bullish
Long Term Trend Following Index – Bullish
Short Term Trend Follow Following Index - Bullish
Relative Strength Index -59.44






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