Market Updates

Daily Market Update - August 26, 2016

Daily market update

Early Morning Update

The Sep16 natural gas contract is trading down $0.03 at $2.80.  The Oct16 crude contract is down $0.01 at $47.32.

 

Summary

Reacting to a smaller-than-expected storage injection, Sep16 natural gas futures settled higher for the fourth straight session, up 10% just this week.  The prompt month closed yesterday at $2.846/MMBtu, up five cents day-over-day, after the U.S. Energy Information Administration reported an 11 Bcf growth in storage stockpiles in the week to August 19.  The weekly build was smaller than the consensus of analysts surveyed by the Wall Street Journal (19 Bcf), and was only one-sixth of the average injection for this time of year.  This has been one of the hottest summers on record, and the trend of below-average injections has trimmed surpluses from more than 50% at the beginning of the injection season to less than 12% now, and has alleviated any concern for a storage glut that could weaken prices.  The total amount of natural gas in storage now stands at 3,350 Bcf, and with above-average temperatures forecast for most of the country through at least the first week of September, it is becoming highly unlikely that gas stockpiles will set a record high by the end of the injection season.


Market Update 082616

Market Settles 082516

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