Nymex graph 8.13.18The natural gas market continues to be competitively priced, as an abundance of production has prevented natural gas prices from rising significantly, while below average storage levels are keeping a floor on pricing. The August contract rolled off the board at $2.822 per MMBtu, lowering the 2018 calendar year average price to $2.902 per MMBtu. Calendar year 2018 is currently averaging 9% below where calendar year 2017 was averaging through August.  Record production continues to be the theme during 2018. In addition to natural gas production averaging nearly 9 Bcf/day more than this time last year, higher crude prices also play a role in bringing more associated gas to market. This is natural gas production associated with the production of crude oil. The September contract moved into the prompt position at $2.781 per MMBtu. After a decline in prices through the end of July, the market has experienced some bullish pressure to start the month of August. After rallying to a six-week high, the market settled down to close out last week at $2.943 per MMBtu.Nymex table 8.13.18