Natural Gas Commentary
Christopher Clark, Procurement Manager
NYMEX Close: May 7.267 June 8.908 July 6.551
Natural gas prices remain extremely volatile heading into the beginning of July. On Thursday June 30, 2022 natural gas prices fell over $1.00 following a strong injection into underground storage and lessened demand due to the temporary closure of a major liquified natural gas export facility.
End-users that have been on the fence about hedging a fixed price may want to consider the recent significant price decline as an opportunity to lock in all or a portion of load, especially further into the future as natural gas prices remain backwardated.
Backwardation in the markets occurs when prices further into the future are lower than near term creating an opportunity to lock a more favorable longer term price. Warmer temperatures for summer cooling demand will likely keep the market moving wildly from week to week. The most important thing any end-user can do is be ready to move should a desired price become available.