Natural gas prices settled at a three-year low this week, after another robust storage injection. The U.S. Energy Information Administration (EIA) reported an injection of 119 Bcf for the week ending May 31st, which well surpassed analysts’ expectation of 109 Bcf. The injection now places storage levels 10.1% above last year’s level and 10.8% below the five-year average, for this same reporting week. Earlier this year, the natural gas storage level was at a 30% deficit to the five-year average, but is currently positioned to fully overcome that difference. The July contract is currently in the prompt position and is trading nearly 11% below June’s settle of $2.633 per MMBtu. Natural gas prices for the first half of 2019 have averaged $2.893 per MMBtu and the remainder of the year is currently averaging $2.411 per MMBtu. The market sentiment looks to remain bearish, especially with milder temperatures forecast through much of June.
