The natural gas futures market for the week ending Sept 20 continued to show stability, with fall weather temperatures, no big changes to the demand or supply side, and a calm geopolitical week. The markets continue to test the $4.00 level, but again falling short of it. The week began with steady increases in the prompt month before retreating on Friday to $3.687. We shall see how the division in congress affects the power and gas markets going forward. Spreads between the 12, 24, and 36 month strips were unchanged from last week.
New gas storage levels came out on Sept 19 for the week ending Sept 13. The data showed 3,299 Bcf of gas in the system, up 46 Bcf from the previous week, or up 1%. The prior year’s report ending the same week showed 3,486 Bcf in the system, so the levels have come down 5% vs the comparable period a year ago. The being said, present gas in the system is at around the 5 year average of 3,281 Bcf.
Customers looking for price protection should elect to lock their rates with a 6 month fixed price product. Those customers seeking the flexibility of short term contracts, and being able to participate in the benefits of lower index pricing should elect to go with a variable price product.