Market Updates

Daily Market Update - August 10, 2016

Daily market update

Early Morning Update

The Sep16 natural gas contract is trading up $0.03 at $2.65.  The Sep16 crude contract is down $0.22 at $42.55.

Summary

In four straight sessions of declines, natural gas prices saw their largest drop yesterday, as the prompt month lost more than 13 cents, settling at $2.615/MMBtu. Although weather forecasts for the next two weeks continue to call for hot weather in many areas, the latest 6-10 day outlook from the National Weather Service is a bit cooler and less supportive than the previous day’s forecast.  With the end of summer quickly approaching, concerns about weakening demand are keeping downward pressure on prices.  Also tethering prices is a bountiful supply of gas in storage.  Even though surpluses to last year and the five-year average have been more than cut in half during the current injection season due to record high power burn and stagnant production, end-of-season projections are still on track to reach near-record levels.  Nine of the ten highest power burn days on record occurred in July 2016, while the tenth occurred in July of last year.  According to the U.S. Energy Information Administration, natural gas consumption for power generation in July averaged 36.1 Bcf/d, which was 2.7 Bcf/d higher than July 2015, and reached an all-time record of 40.9 Bcf/d on July 21.

Market Update 081016

Market Settles 080916


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