Energy Prospectus

$3/mcf is nothing to cheer about but it sure is a lot better than $2/mcf. If NG in storage stays under 4 Tcf (unlikely but possible) AND we get a cold start to the winter, we could see $4/mcf 8-9 months from now. - Dan

The July 2012 NYMEX natural gas
futures contract ended the week at
$2.467, up $0.168 from last week’s
settlement price of $2.299.
• The remaining months of the summer
strip (Jul12-Oct12) ended the week at
$2.542 and next winter’s strip (Nov12-
Mar13), at $3.206.
• The 12-month forward strip (Jul12-
Jun13) ended the week at $3.015; Bal12
(Jul12-Dec12), at $2.704, and Cal13
(Jan13-Dec13) settled at $3.427.
• Cash prices ended the week at $2.44, up
22½ ¢ from last Friday’s price of $2.215
at Henry Hub.
• Natural gas prices rallied after an
unexpectedly weak storage injection in
Thursday’s EIA inventory report.
• Warmer weather has boosted demand
following several weeks of mild
temperatures nationwide. The Atlantic
basin is quiet with little risk of tropical
storm development. Source: NYMEX

Working gas in storage was 3,006 Bcf as of Friday, June 15, 2012, according to EIA estimates. This represents a net increase of 62 Bcf from the previous week. Stocks were 680 Bcf higher than last year at this time and 641 Bcf above the 5-year average of 2,365 Bcf.

Still bearish but there is "hope" that storage level will stay below 4 TCFE going into winter.