Energy Market News – May 8, 2025

Environ provides this regular energy market news report covering high-level energy market conditions to all of our procurement clients. Our clients are hospitals, colleges and universities, municipalities, and companies of all sizes across industries. Environ Market Analysts track and analyze millions of data points to help our clients reduce exposure to market swings, lower energy costs, and prepare for long-term price stability. For localized market analysis or information on scheduling an energy audit, email info@environenergy.com.

Early Injections Push Storage Above 5-Year Average Amid Mixed Signals

Thanks to injection season beginning a month early, natural gas storage levels have miraculously climbed back above the 5-year average. Despite being at a storage “surplus” the past couple of weeks, natural gas pricing has been slowly (and painfully) increasing day after day.

Recessionary forecasts brought about an “oversold” Natural Gas that’s now in the midst of a correction. Near term forward curves will likely be influenced by the results of tariff negotiations. In the case that the majority of tariffs are lifted, and the economic outlook improves, energy markets could increase rather rapidly. 

Bearish

  • Storage levels are above the five-year average.
  • The economy is showing signs of instability.
  • Spring weather has been mild.

Bullish

  • Summer weather is approaching, which often marks the beginning of speculative trading season.
  • Natural gas production levels are expected to remain stagnant.
  • Demand is projected to increase due to new LNG terminals coming online through 2027.
  • Ongoing trade war uncertainty continues to impact market sentiment.

Storage Report: 5/8/25: Early Injections Due to Warm Weather

Expected Injection – 103 BCF

Actual Injection – 104 BCF

Current Storage Level – 2,145 BCF – 1.4% below the 5-year average

Storage has recovered to above the 5-year average due to favorable temperatures throughout the past two months. Levels remain 412 BCF lower than last year at this time – there is still work to be done to prepare for next winter.

NOAA MAP: Warm Temperatures in the East, Cool to Normal in the West

Regional Dot Plots

Rolling Gas Curve

Environ Energy’s veteran Advisors, Market Analysts, and Sustainability Consultants have decades of experience in procurement, risk management, data analysis, decarbonization planning, and renewable energy sourcing. We take a full circle, connected approach to review consumption, spend, and regulatory compliance requirements for our clients to drive positive results that other consulting firms can’t achieveContact us at info@environenergy.com to learn how we can help reduce costs and improve energy efficiency. Stay informed with the latest energy market news to navigate your energy decisions with confidence.

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