In early trade the September's are trading at $3.784 down 0.003. We continue to prefer the equities to the futures but the latter appear to be feeling for a bottom.
From the Energy Information Administration:
Natural Gas Weekly Update
for week ending July 23, 2014 | Release Date: July 24, 2014 | Next Release: July 31, 2014
...Nymex at 8-month low. Nymex prices declined this week, falling from $4.119/MMBtu last Wednesday to $3.762/MMBtu yesterday, their lowest level for the near-month contract since last November. The price of the 12-month strip (the 12 contracts between August 2014 and July 2015) fell from $4.159/MMBtu last Wednesday to $3.855/MMBtu yesterday. Weather forecasts are predicting continued mild weather over much of the country east of the Rockies, helping to put downward pressure on futures prices.
Supply increases and consumption decreases. Dry natural gas production increased by 0.3 Bcf/d, or 0.5%, from the previous week, to 68.6 Bcf/d. Dry production hit a record high on Monday of 69.1 Bcf, according to data from Bentek Energy. The record was confirmed by other industry analysts, with Genscape estimating that Lower 48 production climbed over 70 Bcf for the first time on Monday. Imports from Canada decreased 5.1% from last week. U.S. consumption fell 3.0%, mainly driven by a 5.6% decline in the power sector as most areas east of the Rockies experienced cooler-than-normal temperatures for much of the report week...MUCH MORE
Deviation between average and normal (°F)
7-Day Mean ending Jul 17, 2014
