Natural Gas & Oil
May '26 Trading range today: $2.59 to $2.79.
NYMEX prices jumped up as much as $0.15 today on the new prompt month.
Today's storage report came in under projections, allowing bulls back in the market.
Brent and Crude remained elevated throughout the day.
LNG
Gulf Coast facilities continue operating at elevated utilization.
Power
MISO says it has enough buffer to meet peak summer demand but sees capacity auction prices near $424/MW.
CAISO is concerned about net demand (total demand minus W&S) being met this summer.
Above normal positive/negative price swings will be tested this summer.
Today's Drivers
The Bears – ($2.60 to $1.90 range) – Decent production, decent injections, strong solar, weak weather.
The Bulls – ($2.95 to $3.25 range) – LNG remains strong, grid concerns, evening ramp scarcity, summer demand.
Today's Special – Pumped Up AI/DC premiums
- Only 5 of the 12 anticipated data centers to be built in 2026 are under construction.
- It takes 18 months to build a data center.
- It takes up to 5 years to build a natgas pipeline and connect it to the data center.
- It takes 5 years to build on-site small modular reactors for data centers.
- Renewables WILL NOT power hyperscalers due to the fact they don't run 24/7.
We're not saying NYMEX/Basis prices will crash, but we could see winter prices fall from their current winter price range.
One big reason we won't see a greater collapse is because LNG exports are the real bull to watch over the next 2 years, and beyond.
LNG construction and demand will outpace AI/DC over the next few years.
Our Nightcap Beats Their Recap