Wisconsin Wholesale Natural Gas Update – April 27, 2017

Wholesale Natural Gas is currently trading at $3.239 per DTH

Maybe it’s just me but today feels a lot more like Groundhog Day than May Day.  For one thing, the off and on snow flurries are definitely more reminiscent of Groundhog Day.  Then there is the U.S. current temperature chart which is virtually identical to the one I included in last week’s report.  It is warm across the south and up into the northeast.  Ditto.  However, in the short term, NOAA is expecting much of the country to cool down.  I guess it is a good thing that I did not put in the tomato plants last weekend as I was originally planning to do.

If you can say ditto about the weather, then you can pretty much say ditto about natural gas prices.  The May contract expired on Wednesday at $3.142 /Dth (as compared to the April expiration at $3.175 /Dth)  Thus the June contract moved to prompt and after an EIA storage report of a +74 BCF build this morning it declined 3.2 cents to close the day at $3.239 /Dth.  Depending on who you read the expectation was for a +68 or a +72, so not too much excitement around the storage news release.  Meantime, traders continue to look at the short-term weather.  The cooler weather in the north is likely to garner some additional heating demand (we have turned our heat back on) while the cooler southern weather will limit demand from the gas-fired power sector.  There is simply not much momentum for gas prices to move either way at this point.

And then we can wrap things up this week with a ditto on the strip prices.  For the week, the 2017 summer strip was down 0.9 cents to $3.274 /Dth while the 2017/18 winter strip was at $3.528, down 0.7 cents.  The 2018 calendar strip moved down 0.1 cents to $3.12 while the 2019 calendar strip was up 2.3 cents to $2.922 /Dth.   Thus the weekly price change chart also looks virtually identical to last week’s.  Sorry, but not much to see here this week.

Blake