Energy Prospectus

Working gas in storage was 3,077 Bcf as of Friday, June 26, 2020, according to EIA estimates. This represents a net increase of 65 Bcf from the previous week.
Stocks were 712 Bcf higher than last year at this time and 466 Bcf above the five-year average of 2,611 Bcf.
At 3,077 Bcf, total working gas is within the five-year historical range.

FINALLY we are starting to see an uptick in demand for power generation. We need a HOT July & August in eastern half of U.S. to push ngas over $2.00.

FEAR that storage will fill before the end of September is what is putting pressure on gas prices at the front of the NYMEX futures curve.
The gap between the August NYMEX contract ($1.72) and the January contract ($2.91) has NEVER been this wide. Something has to give.
> If we do get a HOT summer and industrial demand & LNG exports pick up in the fall, we should see front month contracts move up to over $2.50 by Christmas.
> On the other hand, if wave after wave of COVID-19 causes rolling shutdowns (thus lower industrial demand for gas) we may see low gas prices continue.

Today's storage report is positive as it shows that demand for gas is picking up.

We are sending out a link to yesterday's Aegis Energy webinar. The first 15 minutes contains some good information about the U.S. natural gas market.

Note from Aegis Energy:
"EIA reported a build of 65 Bcf for the week ending 6/26/2020. This was smaller than the median estimate of 73 Bcf. Today’s stat fell outside the expected range, which was 85 Bcf on the more bearish end, and 68 Bcf on the more bullish end. Gas prices moved higher after the report."