Natural Gas Futures Retreat as Hefty Injections Seen Pressuring ... - Natural Gas Intelligence

Natural Gas Futures Retreat as Hefty Injections Seen Pressuring Prices While Market Awaits Heat - Natural Gas Intelligence

With mild May weather-driven demand poised to further expand an already healthy inventory cushion, natural gas futures continued to grind lower in early trading Tuesday.

Coming off a 9.2-cent sell-off in the previous session, the June Nymex contract was down another 7.4 cents to $2.244/MMBtu at around 8:45 a.m. ET.

Forecasts as of early Tuesday continued to suggest the market should anticipate hefty storage injections in the weeks ahead, according to EBW Analytics Group.

“Although offset by falling gas prices and increasing coal-to-gas switching, milder weather is opening the door to massive mid-May injections,” EBW analyst Eli Rubin said.

The latest LNG feed gas readings, meanwhile, were “soft” at around 13.5 Bcf/d, with production increasing following...