First Time since 1973- Natural Gas and Coal Each 32% of Electricity Generation in the US for April.

This is a market update for June 29, 2012.

The Aug12 natural gas contract is up $.03 to $2.75. The Aug12 crude contract is up $2.64 at $80.34.

The Aug12 contract finished down 7 cents yesterday to $2.722.  The market was down as much as 15 cents at one point following the natural gas storage report which yielded an injection of 57 Bcf which was slightly above market consensus of 53.

As we have continued to talk about coal to gas switching a lot more in recent months, as natural gas prices have dropped to a level where it is competitive with coal.  The EIA reported this week that Natural gas and coal accounted for 32% each of net electricity generation in the US for April.  This is the first time gas has matched coal since the EIA began collecting data in 1973.  In 1973 coal accounted for 45.5% of generation while gas accounted for 18.3%.  Heat will continue to grip the majority of the country pushing up short term gas and electricity prices.