Forwards retreat on 'sticker shock;' weak cash drives storage injections

摘要

Financial basis markets fell early this week, retreating as much as 32 cents for the prompt month Tuesday and Wednesday under the pressure of a high June NYMEX gas futures contract, weaker cash prices and the resulting increase in storage injections.rnThe June NYMEX contract on Wednesday rolled off the board with the third-highest expiration on record.rn"And that's without hurricanes, heat or low storage," a Texas-based trader said. "It seems like people are still having 'sticker shock."'rnThe IntercontinentalExchange's bidweek indication report Wednesday, when the biggest basis declines occurred, also showed regional index deal prices falling more than 30 cents from Tuesday in many markets.