Market Updates

Daily Market Update - August 31, 2016

Daily market update

Early Morning Update

The Oct16 natural gas contract is trading up $0.02 at $2.85.  The Oct16 crude contract is down $0.45 at $45.90.

Summary

In its debut session as the prompt month, the October natural gas futures contract traded as high as $2.943/MMBtu early in the day, before falling lower, eventually settling at $2.827/MMBtu, down 6.9 cents for the day.  Weather forecasts continue to show warmer-than-normal temperatures for over half of the eastern U.S. through at least the second week of September, but normal temperatures are declining in the shift from summer to fall, which should mitigate cooling demand.  With less gas needed for power generation, more should be available for storage as the injection season winds down.  Natural gas stockpiles have been growing at a below-average rate this summer, but are still in surplus to historical averages.  While there is more gas in storage at this time of year than ever before, those surpluses are expected to continue to shrink, and end-of-season storage levels are projected to fall just short of the all-time high we reached at the end of last year’s injection season.  Meanwhile, the market seems to be ignoring increasing tropical storm activity, despite some evacuations reported from manned rigs in the Gulf of Mexico and a 10% curtailment of natural gas production in that region.

Market Update 083116

Market Settles 083016

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