Natural Gas & Oil
June '26 NYMEX NatGas Trading range today: $3.16 to $3.39.
Natgas prices pulled back 3% today, falling from a 3-month high.
Sustained oil production for the remainder of 2026 supports additional gas production.
After enjoying a 17% downward correction in May, Brent (+4%) and Crude (+5%) rallied today on revived geopolitical premiums as the US-Iran ceasefire breaks down.
However, major financial houses are banking on global oil production outweighing global consumption, pushing Brent down to $60/B by the end of 2026.
So, the banks are banking on a complete US-Iran resolution by Q4 2026.
LNG
- LNG exports dip below 18Bcf/D as prolonged maintenance for some terminals continues
- EIA expects 2026 LNG exports to average 18.9Bcf/D before jumping to 124Bcf/D in 2027
Power
FERC and NERC released their summer projections, warning power consumption this summer will outpace the previous five summers.
Over 58GW of generation has been added to the grid since last summer, mainly from Solar and Battery Storage.
Today's Drivers
The Bears – ($3.05 to $2.80 range) – Production returning to near record numbers, storage staying above average despite smaller than forecasted injections, solar is crushing midday supply.
The Bulls – ($3.35 to $3.85 range) – LNG exports returning to +18Bcf/D soon, increasing CDDs, weather models trending warmer, above normal temps for first half of June forecasted, storage builds are not meeting projections.
Today's Special – SoCal BTS Rights & Direct Access Power Applications
For all who have inquired about SoCalGas Company's BTS Rights applications and California Direct Access for Third Party Electricity Supply Lottery, we are prepping your paperwork/forms for your review and will be contacting you this week.
Many of you have been down this path with us in past years, and we are scrubbing your past years' information in an attempt to minimize your paperwork.
Our Nightcap Beats Their Recap