Market Updates

Daily Market Update - August 24, 2016

Daily market update

Early Morning Update

The Sep16 natural gas contract is trading up $0.01 at $2.77.  The Oct16 crude contract is down $0.76 at $47.34.

Summary

On the back of increasingly warmer weather forecasts, Sep16 natural gas futures continued their climb yesterday, settling at $2.761/MMBtu, up another 8.2 cents.  At a time when demand usually tapers off heading into the fall, warmer-than-normal temperatures across the majority of the U.S. should keep cooling demand strong.  Demand for natural gas for power generation should remain robust, as well, limiting the amount of excess gas to be stored for winter.  The fresh two-week high comes as traders keep an eye on three separate tropical systems developing in the Atlantic Ocean.  None of the storms being tracked by the National Hurricane Center have developed into a hurricane, but the possibility of a hurricane usually pushes natural gas prices higher, as a major storm could disrupt offshore natural gas production in the Gulf of Mexico.  While most domestic natural gas production has moved inland, 4.5% still comes from offshore production, and nearly all of that is in the Gulf.  The tropical season has been relatively quiet so far, even after being forecast earlier this year to be a little busier than usual.

Market Update 082416

Market Settles 082316

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