Natural Gas & Oil
May '26 Trading range today: $2.56 to $2.74.
Natgas prices finally broke through the $2.60 mark today, falling as much as $0.16.
The main reason for this is a storage injection that came in well above expectations.
Crude sits above $96 while Brent sits above $106 – both up over 4.5%.
Middle East turmoil remains the dominant factor for oil with little progress being reported.
LNG
The Golden Pass LNG terminal in Texas shipped its inaugural cargo today.
That's an additional 2Bcf/D to 2.6Bcf/D worth of upward price support going forward.
This marks the 10th operational U.S. export facility and is a critical hedge against global supply shocks following the recent attack on Qatar's Ras Laffan facility.
Power
Eastern markets hold firm while ISOs in the west and central regions post weak to negative pricing.
Don't expect weak to negative prices to continue through 2026 as summer demand will crank up soon along with AI/DC demand.
W&S will be put to the test this summer in terms of reliability and cost effectiveness.
Today's Drivers
The Bears – ($2.60 to $1.90 range) – Light demand, strong injections, RE increasing.
The Bulls – ($2.95 to $3.25 range) – LNG exports increasing, production not keeping pace.
Today's Special – Scorched Earth
AccuWeather predicts 65,000 to 80,000 wildfires will burn in 2026, or 5.5MM to 8MM acres.
National drought conditions are being blamed but let's not forget about poor forestry management.
Wildfire danger is expected to increase across much of the western US, especially for California over this coming summer after reporting the lowest snowpack in recent years.
Over 60% of the US is now listed with drought conditions.
The area with the highest drought is the Southeast at over 80%.
Next is the West at 80%, with the Southern Plains coming in 3rd with nearly 70% drought.
Our Nightcap Beats Their Recap