The natural gas market continues to be competitively priced, as an abundance of production has prevented natural gas prices from rising significantly, while below average storage levels are keeping a floor on pricing. The August contract rolled off the board at $2.822 per MMBtu, lowering the 2018 calendar year average price to $2.902 per MMBtu. Calendar year 2018 is currently averaging 9% below where calendar year 2017 was averaging through August. Record production continues to be the theme during 2018. In addition to natural gas production averaging nearly 9 Bcf/day more than this time last year, higher crude prices also play a role in bringing more associated gas to market. This is natural gas production associated with the production of crude oil. The September contract moved into the prompt position at $2.781 per MMBtu. After a decline in prices through the end of July, the market has experienced some bullish pressure to start the month of August. After rallying to a six-week high, the market settled down to close out last week at $2.943 per MMBtu.
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