Natural Gas & Oil
May '26 Trading range today: $2.58 to $2.67.
Natgas storage report came in with a 59Bcf injection, putting us 5.8% above the 5-yr. avg.
Production continues to hold near record levels with above average injections expected over the next 4 weeks.
Brent and Crude moved up approximately 4.5% today on stalled peace talks with Iran.
LNG
- LNG exports remain close to record levels at 19.4Bcf for today.
- Exports are expected to grow 18% in 2026 as 5 new projects begin operations.
Power
- Oversupply from solar in California suppressing natgas demand in the state.
- The largest RE project ever in the history of the US nears completion, delivering wind generated power in NM to consumers in CA.
- The 20-year Sun-Zia project is a 550-mile transmission line that is capable of delivering 3,500MW capacity (roughly 320,000 households) to the Golden State.
- The $11BB project is not expected to lower power rates but will provide power to a whopping 0.81% of the state's population.
Today's Drivers
The Bears – ($2.60 to $1.90 range) – Record production, Storage refilling quicker than previously projected, RE keeping gas demand lower than average.
The Bulls – ($2.95 to $3.25 range) – LNG exports remain strong, summer cooling demand risk still ahead, global demand remains strong – ties to increased US LNG exports.
Today's Special – New York Wake Up Call
Williams has broken ground on the $1BB Northeast Supply Enhancement (NESE) project.
The goal is to expand the Transco pipeline and alleviate natgas price volatility in the region by the end of 2027.
The project faced years of regulatory delays and state government opposition, all the while pushing higher prices on rate payers.
The new pipe will increase daily flow to the region by 400,000 MMBtu.
Our Nightcap Beats Their Recap